European Commission concerned by Irish Budget deficit

The European Commission is today expressing concerns about the size of our Budget deficit.

Our public finances are expected to be in the red by 5.5% this year, and 6.5% next year, which goes against EU stability rules.

The Government is to be asked to reduce borrowing levels to below 3% of our GDP, and if it does not, EU authorities will take action against Ireland.

Speaking in response to the news, Taoiseach Brian Cowen said: “It's not that we’re being targeted, in fairness. There are rules under the Stability and Growth Pact.

“There are other counties who have exceeded the 3% deficit in the past and there’s a procedure in place for monitoring and evaluating that and working with the member state government, in this case ourselves.”