Bank bailout will be key to success of four-year plan

THE EU-IMF bailout of the banks will be a key element to the success of the four-year deficit reduction being published today, Government sources have said.

Under the plan, €15bn of spending cuts and tax hikes will be imposed between now and 2014 in order to reduce the deficit to 3% of GDP as requested by the European Union.

But as well as plugging the hole in the public finances, the document also aims to increase competitiveness and spur economic growth.