Ireland told to cut deficit as Britain escapes sanction

Britain should get an extra two years to reduce its budget deficit, despite its failure to comply with a five-year-old decision to cut its government spending deficit.

Ireland is among the states told to continue on its current path, reducing both its debt and deficit, by the European Commission in its annual recommendations to member states.

On the day the Government announced extra measures to deal with the mortgage arrears crisis, the commission urged a solution be found by the end of the year for the “vast majority” of distressed borrowers.