‘Merit to ease €3.1bn adjustment’

The Government should increase capital spending and ease up on fiscal consolidation this year as better than expected tax receipts is leaving room for manoeuvre, Goodbody Stockbrokers’ chief economist Dermot O’Leary has said

The Government has agreed with the troika to meet a fiscal deficit of 5.1% for 2014 and 3% the following year. Based on current projections, the budget deficit will hit 4.3% next year and 2.4% in 2015, said Mr O’Leary.

“It is indeed important that the Irish Government does not lose the market credibility that it has fought hard for over recent years.