Coughlan: Government €3bn budget savings target remains unchanged

TÁNAISTE Mary Coughlan insists the Government is not looking at increasing its €3 billion savings target in the 2011 budget, despite the recent rises in its borrowing costs.

The Education Minister said last week’s decision on how to wind down Anglo Irish Bank will bring more certainty, which should help bring down the interest rates associated with raising capital to keep the country running.

But while questions have been raised about whether the €3bn savings target set by Finance Minister Brian Lenihan will now be enough, Ms Coughlan said it remains the figure being sought by the Cabinet in its deliberations ahead of the December 7 budget. “We’ve gone through a fairly difficult time reducing our public expenditure considerably and we will continue on the pathway that has been agreed with the European Commission,” the Tánaiste said.