IMF: Tough task ahead for Government

THE Government faces a tough task if it is to meet the targets set out by the European Commission to bring borrowing under control by 2014, the IMF has said.

This will require years of budgetary restraint, and the possibility of weaker than anticipated growth could hinder its plans to reduce the budget deficit.

“Following the already sizeable consolidation in 2009 and 2010, further consolidation measures, although not as large as that already achieved, of at least 4.5% of GDP are required,” the IMF said yesterday in a report on the Irish economy. “The risk of consolidation fatigue and hence a fraying of the necessary social cohesion cannot be ruled out,” as those goals are pursued, it warned.