EU will warn Government to stick to plans for budget

The EU Commission will warn the Government today to stick to its plans for October’s budget, despite the most likely next leader of the Labour Party, Joan Burton, saying she does not think the €2bn in spending cuts and tax increases is going to be necessary.

In its recommendations for the economy, the EU Commission is expected to say there should be no leeway in meeting the target of reducing borrowing to below 3% of GDP next year.

Ahead of discussions throughout the coming months on what level of adjustment will be needed, the Commission is to recommend that budget plans should be adhered to in order to retain the confidence of international markets.