Spotlight will now turn to scale of deficit

ONCE the future of Anglo is decided on over the next few weeks and the transfer of assets to NAMA proceeds as planned, a new report suggests the focus will shift back to the country’s mounting deficit, which last year was the biggest in the EU.

Both the economic crash and banking crisis have dramatically changed the appearance of the state’s balance sheet, according to a new analysis by economist Brian Devine of NCB Stockbrokers.

The Government’s plan is to reduce the deficit to 2.9% of GDP by the end of 2014, but it could end up with a deficit above 25% this year.