ESRI: €15bn cuts may prolong recession

IMPOSING €15 billion of cutbacks to get the deficit under control by 2014 could tip the economy into a “protracted recession”, the ESRI has warned.

It also said the Croke Park agreement on public service pay and pensions might have to be ripped up as the state grapples with the massive black hole in its finances.

The warning came as Government efforts to seek a consensus with the opposition on budgetary strategy ended in failure last night.