Cracks appear in Labour support for deficit plan

CRACKS started to emerge last night in the Labour Party’s support for adhering to the punishing EU-driven plan to “frontload” cuts in a bid to fast track reductions in the deficit.

The move to reduce the deficit to 3% of GDP by 2014 has already come under heavy fire from the ESRI which has warned the speed and scope of the cuts needed could lead to a “lost decade” for the country.

Labour’s frontbench equality spokeswoman Kathleen Lynch expressed fears that taking too much out of the economy too soon could “destroy the social fabric” of the country and leave Ireland in dire economic straits long after 2014.