Economist urges 'gentler' moves to close Budget deficit

Ireland's trade unions are calling for higher taxes for those on big salaries and the corporate sector in October's Budget.

The Irish Congress of Trade Unions has said increasing taxes on those who can afford it is the best way to close the Budget deficit.

Economist Tom Healy of the Nerin Institute said the Troika should not demand a full €3.1bn in adjustments.

Mr Healy said: "You can get to the end point, 3% by 2015, more effectively and more efficiently by a gentler consolidation on taxes and spending."