IMF: Stick to €3.1bn budget cuts target

The IMF wants the Government to proceed with the planned €3.1bn budget consolidation this year, according to its Mission Head for Ireland, Craig Beaumont.

The Government is facing mounting pressure to ease up on budget cuts this year. It agreed with the troika to reach a fiscal deficit of 5.1% in 2014, which would be reached through €3.1bn in savings this year.

On current projections, if the planned €3.1bn in cuts are introduced, then the economy would overshoot the 5.1% target. This has increased pressure on the Government to aim for a 5.1% fiscal deficit and ease up on the €3.1bn in cuts.