Threat to AAA debt rating may spur deal

PRESSURE on the Government to reach a deal on €2 billion of public spending cuts increased last night after being warned Ireland was in danger of losing its prized AAA debt rating.

It came as Taoiseach Brian Cowen was forced to reject suggestions that our economic plight could be compared to that of Iceland, which has seen its government fall because of the scale of the crisis there.

The debt rating warning came from credit rating agency Moody’s, which said the ongoing financial crisis was likely to “significantly affect” Ireland’s economic strength.