‘Game of poker’ over budget deficit target

Labour ministers Eamon Gilmore and Pat Rabbitte are “technically correct” that the agreement with the troika is to reach a 5.1% budget deficit target by 2014, but it will come down to a “game of poker” whether the Government will be allowed ease up on the €3.1bn in consolidation planned for October’s budget, according to UCD economics professor Karl Whelan.

Both the Tánaiste and Minister for Communications have said that the Government has room to introduce a softer budget as it is ahead of its targets to meet the 3% deficit by 2015 agreed with the troika as part of the bailout programme.

Moreover, the Government secured roughly €1bn in savings through the restructuring of the promissory notes in February.