Commission says no leeway on budget

Current figures do not show any leeway for the Government in next year’s budget and the full sum of €2.1bn must be cut, says a European Commission report.

This is contrary to what Finance Minister Michael Noonan believes, and could set the country on a collision course with Brussels when the draft budget is produced in October.

The country’s huge debt, that reached more than 120% of GDP, can only be reduced if the fiscal adjustment continues, the report warns, noting that the Government is coming under political pressure on the budget.