‘Slashing deficit to 3% too quickly could backfire’

IF we get overzealous about slashing the deficit to 3% in four years we risk undermining growth and make that target impossible.

Dermot O’Leary, chief economist at Goodbody Stockbrokers said yesterday there was nothing sacred about the 3% figure, or the time frame, that cannot be renegotiated.

He agreed it was important we make it clear to the markets that we have a plan, but he backed the call from the ESRI to have it extended out to 2016.