Budget 2012 to be high on troika’s agenda

BACKROOM discussions between EU and IMF officials and the Government will focus on what measures are planned ahead of a tough budget at the end of the year.

Economic overseers of Ireland’s rescue loans are in Dublin this week to assess Ireland’s commitments under the financial aid package.

The troika is expected to sign off on the latest three-month review next week.

Officials will also meet Finance Minister Michael Noonan and Public Expenditure Minister Brendan Howlin during the assessment of the bailout terms in the coming days.

Other meetings are scheduled, with the Department of Finance unit overseeing the bailout terms, with the National Treasury Management Agency and the Irish Congress of Trade Unions.

Protesters gathered outside the department yesterday as negotiating teams met inside.

The Central Bank’s progress on banking governance and new measures to avoid financial crises in the future will also be examined by the teams with the troika.

They are expected to ask the Government to reveal planned budget measures to help make cuts of between €3.6 billion and €4bn in December, an EU source said.

“They want the policies on the table. Some of them may take time and need legislation. But if they’re up front, it will send out a good message of transparency and maybe give consumers and the markets confidence,” the source said.

The current review of the terms from April to the end of June will look at banking restructuring, the jobs initiative, burden sharing by subordinated bondholders, the setting up of bodies like the Fiscal Advisory Council, half-year Exchequer returns, and other measures.

The next three-month review, up until September, will then be discussed, most likely next week.

Senior officials with the troika will arrive next week including the head of the EU’s mission to Ireland, Dr Istvan Szekely.

It is uncertain if the IMF’s head of mission, Ajai Chopra, will come.

The review is scheduled to wrap up on Thursday, when a statement will be released and public briefing may be given. The actual third memorandum of understanding between the Government and the troika will not officially be signed off on by financial chiefs overseeing the loans in Brussels, Washington DC and Frankfurt until at least next month.