FG junior minister urges harsher budget cuts

We could be facing an even tougher budget than feared after Brian Hayes, the junior finance minister, proposed that the Government go beyond its savings target and impose harsher cuts than officially required.

Mr Hayes said pitching such a budget — a reduction in the fiscal deficit of 1% more than has been mooted so far — would strengthen Ireland’s reputation in the international markets and facilitate easier terms for borrowing money to run the economy.

Extra cuts would bring the deficit down to about 4% to pave the way for a successful exit from the bailout, said Mr Hayes.