Gilmore: ‘Debt brake’ won’t lead to €6bn cuts

Eamon Gilmore yesterday denied claims a “debt brake” rule in the EU treaty would require €6bn in additional savings annually.

The Tánaiste said the savings rule in the fiscal compact treaty, requiring countries with bad debt to reduce it by one twentieth a year, would not need any cuts at all.

“It won’t cause any additional cuts. In fact, it’s a rejection of the treaty which will result in additional cuts having to be made because, if this country does not have access to emergency funding if we need it, it would result in dramatic cuts having to be made,” Mr Gilmore said.