IMF call to adjust cuts ‘does not apply to us’

The Department of Finance said the IMF’s findings that austerity was having a worse effect on countries than they had predicted did not apply to Ireland.

The Government has said it will continue to cut €3.5bn out of the economy next year, although the IMF is telling countries to change their targets when growth is worse than expected.

However, IMF managing director Christine Lagarde told journalists their advice “clearly applies to pretty much all countries, particularly in the eurozone”.