Coalition tensions rise over budget strategy

Coalition tensions over the upcoming budget strategy have heightened with two Labour ministers saying people needed relief rather than the deeper cuts proposed by Fine Gael minister Brian Hayes.

Labour ministers have rejected suggestions by the junior finance minister that the Government should exceed its savings target and bring the deficit down to around 4% to please the markets. Speaking to the Irish Examiner, junior enterprise minister Sean Sherlock rounded on his remarks and said excessive savings would curb economic recovery and take “cash out of people’s pockets”.

While coalition ministers disagree on the amount of savings in the October budget, most have agreed that the cuts must reduce the fiscal deficit to 5.1% of GDP next year.