€1.8bn savings enough to reach 3% deficit goal, says think-tank

A fiscal adjustment of €800m and a spending stimulus of €1bn in October’s budget would be enough to reduce the deficit below 3% by 2015, according to the Nevin Economic Research Institute.

The institute’s economist Tom McDonnell, says a €2bn budget adjustment could do damage to the economy, particularly in the delivery of key services such as health and education.

Over the past week, both the IMF and the European Commission have called on the Government to implement €2bn of budget cuts next October.