Lenihan determined to avoid 'colossal borrowing'

The Finance Minister Brian Lenihan has said he will do what is needed in next month's Budget to avoid colossal borrowing.

In his pre-Budget outlook last night Mr Lenihan said the economy will shrink by 1.5% in 2010 compared to the much bleaker forecast of 3% in April's emergency budget.

The Minister said economic growth will return next year and unemployment will peak, but he insists €4bn in cuts still have to be found.