EU spending rules ‘to free up’ €1.5bn

Finance Minister Michael Noonan has said that the European Commission is expected next week to ease spending rules for Ireland and give the green light for an extra €1.5bn to be spent in future budgets.

The loosening of the purse strings would potentially allow the next government to spend at least €12bn on public services and tax cuts over a five-year term.

However, adjusted budgetary targets for Ireland would have to take into account any likely global risks. Mr Noonan has said a decision by Brussels to relax spending rules is based on his officials predicting Ireland will further repair the public finances.