Coalition must quit austerity: ex-IMF adviser

The IMF’s former expert on Ireland has warned the Government to abandon its austerity agenda as Coalition parties clashed over fresh cuts to child benefit in the upcoming budget.

The IMF’s ex-mission chief to Ireland, Ashoka Mody, waded into the pre-budget battle by insisting on a major change of direction.

The economic policy guru urged ministers to halt the Coalition’s cuts agenda to stoke growth and boost output. Prof Mody told ministers to think again about plans to take €3.1bn out of the economy via spending cuts and tax hikes in the October budget.