EU: Use promissory note saving to cut debt

The EU will take its foot off the austerity pedal today — but will insist Ireland puts any savings from the Anglo promissory notes into cutting debt rather than current spending.

At the same time, the European Commission is expected to warn about the growing levels of inequality in the country, with 30% of the population at risk of poverty or social exclusion, while the number in consistent poverty increased by more than a third in just two years.

Six countries are expected to be told they have a year or two longer to cut their spending to a deficit of no more than 3% of GDP, while five will be taken off the watch list having got their spending down to the 3% limit.