EU rule on Irish Water budgets today

The result of a crucial market test to determine if Irish Water can stay off the State balance sheet is due today, according to a Government source.

If the beleaguered national water utility passes the test, the money the State is paying the company this year to support its operations will not count towards calculating the annual budget deficit.

Ireland is aiming for a deficit of 2.7% GDP. Government officials calculate that if this target is missed, more than €500m will have to be added to the national debt, upsetting budget figures.