ESRI: State should plan for €2bn budget

The Government should plan for a €2bn budget in October, although the planned water charges and carryover savings from the Haddington Road Agreement should be enough to reduce the fiscal deficit below 3% next year, according to the ESRI’s John FitzGerald.

Under the terms of the bailout programme agreed with the troika, the Government is scheduled to introduce one last austerity budget in order to meet the 3% deficit target next year.

According to the latest Country Specific Recommendations released by the European Commission last week, it urged the Government to proceed with this €2bn figure.