Government to hold talks with social partners

Talks between the Government and the social partners on plans for economic recovery are getting underway today.

The Cabinet held meetings over the past two days to come up with a framework to save €2bn this year.

Both sides have been coming up with ideas on how best to cut costs and improve the public finances.

They will meet today to see if there is any common ground.

It is understood that the Government is looking at the possibility of introducing a pension levy for public service workers.

Pay cuts had been up for discussion, but unions had signalled that the option would not be accepted by them.

The pension levy would be graduated so that those on higher incomes would pay more than those on lower pay grades.

The negotiations are expected to continue over the weekend, with a final decision hoped to be reached by Tuesday when the Cabinet will meet again.