Europe rejects Cabinet growth forecast

THE Government’s battered credibility suffered a fresh blow last night after the European Commission flatly contradicted its projections for economic growth next year.

It came as Central Bank governor Patrick Honohan signalled the end for Anglo Irish Bank, saying its toxic brand name would disappear within “weeks” as a first step.

A revised plan to wind down Anglo more quickly than originally anticipated will then be submitted to the EU by the end of January.