‘Full €2bn in budget consolidation not needed’

The Government will not have to implement the full €2bn in budget consolidation to meet the 3% fiscal deficit target next year, according to University College Cork economics professor, Seamus Coffey.

The size of the budget adjustment has become a thorny political issue that is likely to test the resolve of the Coalition partners over the next few months.

Both Labour leadership contenders, Joan Burton and Alex White have signalled that they will ease up on austerity if elected.