European Commission warns Ireland regarding debt levels

Ireland’s financial deficit is way beyond acceptable EU limits and the Government’s forecasts for improvement are “somewhat optimistic”, the European Commission warned today.

A Commission report launching formal “Excessive Deficit Procedure” against Ireland under EU debt and deficit rules said a sharp deterioration in Ireland’s public finances is continuing and could see an estimated deficit of 6.3% of GDP in 2008 widen to 9.5% this year – more than three times the maximum 3% deficit permissible under the EU’s Stability and Growth Pact.