Deal binding no matter who is in power, warns EC

THE contract being negotiated by the Government with the EU, ECB and IMF will bind whatever government is in power, since it is an agreement with the state, the European Commission has confirmed.

An early general election will not make any difference to the EU-IMF programme, Economics Commissioner Olli Rehn said, as negotiations will be concluded next week.

But the budget will set in train some of its actions, cutting €6 billion off the deficit for 2011, and as such, passing it was essential, Mr Rehn has warned.