EU may seek further cuts in 2011

THE Government may be asked by the European Commission next week to introduce new austerity measures for next year to cut the spending deficit faster.

The measures taken by 12 countries are to be assessed in detail by the commission on Tuesday, including the latest package undertaken by Spain and Portugal.

Finance Minister Brian Lenihan has repeatedly said he does not expect he will be asked to take further steps to cut the deficit, which at 14.3% last year and projected to be 10.75% for this year, is the highest in the EU. But the commission has refused to rule this out.