‘Exaggerated’ market needs must be met

IRELAND has to “jump” to meet the expectations of the international markets even though they are “greatly exaggerating” the country’s economic problems, Central Bank governor Patrick Honohan has said.

The markets have yet to be convinced that Ireland can resolve its difficulties and so the Government has no other choice but to implement the austerity measures necessary to reassure them, he indicated.

Dr Honohan said he strongly endorsed both the Government’s decision to set out a four-year plan to tackle the deficit and to begin that work with an initial adjustment of €6bn in next month’s budget.