Lenihan says deficit cut targets still achievable

FINANCE Minister Brian Lenihan has said that, while Ireland’s economic growth will be slower than initially anticipated, the Government can still meet its budget deficit reduction targets by the 2014 deadline.

Addressing the annual conference of the Irish Banking Federation (IBF), in Dublin yesterday, the minister called the task of meeting the commitment to reduce the budget deficit to 3% of GDP by 2014 “daunting”, but added that Government remains steadfast in its determination to deliver the reduction on time.

Mr Lenihan said, while many countries need to reduce their budget deficits, “the stakes are higher” for Ireland, given the recent deterioration in market sentiment towards us and the resulting rise in borrowing costs for the state.