Fine Gael roll back on proposal for rainy day cash

Finance Minister Michael Noonan has rolled back on plans for a €2.5bn ‘rainy day fund’ for any shocks to the economy and admitted this will not be part of Fine Gael’s specific spending promises in the election campaign.

As the coalition party launches its long-term economic spending plans today, it faces questions over floating the idea of a ‘phantom’ economic reserve fund to voters.

Mr Noonan, who first mooted the idea last week, was forced into an embarrassing U-turn yesterday and conceded that Fine Gael would not be specifically allocating it as part of the party’s €12bn planned spend over the next five years.