EU deal will not soften blow of budget

THE country will “still have to face the music” with cuts of €4 billion in December’s budget, despite a €1bn boost from the EU agreement on the bailout.

Finance Minister Michael Noonan said the EU has also agreed to fund Ireland beyond 2013, when the current €85bn loan runs out, if the country is unable to return to the markets.

Following Thursday’s deal on a 2% cut on the interest on the EU share of the loan, Mr Noonan said he expects further savings from a 1% reduction on the IMF loan.