Rabbitte hints at softer budget than planned €3.1bn in cuts

A senior Labour minister has strongly hinted that the budget adjustment announced in October should be significantly less than the €3.1bn previously planned.

Communications Minister Pat Rabbitte said he “can’t see any argument” that would justify going further than the target of reducing the deficit to 5.1% of GDP next year.

Last week the economic think tank, the ESRI, recommended that the Government stick to its “fiscal consolidation” of €3.1bn in spending cuts and tax increases.