‘Stick to full €2bn budget adjustment’

Austerity should end in 2015 if the Government adheres to the current €2bn fiscal adjustment path and the economy continues to grow, according to the chairman of the Irish Fiscal Advisory Council, John McHale.

The council says significant progress has been made in resolving Ireland’s fiscal crisis. A total of €32bn in spending cuts and tax increases has been agreed with the troika in order to reduce the budget deficit, which ballooned to 31% of GDP in 2010, to below 3% by the end of next year.

So far, €30bn of these cuts have been implemented and the council is urging the Government to proceed with the full €2bn budget adjustment next October.