Noonan abandons €2bn cuts target

Plans to push through a €2bn package of spending cuts and tax hikes in the October budget have been abandoned.

The Cabinet was told yesterday the financial situation had improved since the beginning of the year and the level of austerity could be eased off.

Finance Minister Michael Noonan said that six months of better than expected figures in tax returns would mean the Exchequer would hit the target of getting the deficit down to 3% of GDP through less drastic action.