EU may ask Government to cut spending next month

IRELAND could be asked to make further cuts to government spending next month when the European Commission finalises its assessment of the country’s deficit and debt.

Both Spain and Portugal reduced their spending very drastically last week when the EU said their spending was still too high and were not reducing their deficits fast enough. The countries will half their deficits to around 5% by next year.

But Ireland appeared to be ignored by ministers, despite having the highest deficit in the eurozone and a forecast for about 10% next year.