Analysts believe more pain on the way

FURTHER painful and difficult cuts are likely to be introduced over the next two years, according to analysts.

Many believe there are at least two more tough budgets ahead as the Government attempts to fix the country’s deficit. They said that decisions are likely to be hit by circumstances outside Ireland’s control.

Davy stockbrokers said events in Europe, such as the possibility of greater purchases by the ECB of European sovereign bonds, may influence Ireland’s economic prospects more than tax increases announced yesterday.