Cut budget by full €3.1bn, says Europe

The Government is coming under increased pressure from the European Commission to reduce the budget, due out later this month, by the full €3.1bn.

It is cutting the forecast for growth for the year from 1.1% to 0.6% and raising the general government deficit to 7.6% of GDP compared to the target of 7.5%.

The report released to eurozone governments last month is due to come before the Eurogroup later this month, and analyses the current state of the economy and the progress of the programme.