Economy centre stage as Dáil set to reconvene

A two-day debate on the economy kicks off in the Dáil this morning as TDs return to work after their long weekend break.

The Government's announcement last night that a €15bn correction will be needed over the next four years will be the focus of the discussions.

The debate is expected to be heated with Opposition continuing to blame Government for getting us into the mess, while FF backbenchers will demand Fine Gael and Labour spell out how they would fix the public finances. .

Centre stage will be on just how much pain is coming next year alone - with most experts expecting a 'frontloading' of around €6bn in cuts for 2011.

Head of research at Davy Stockbrokers Robbie Kelleher agrees that frontloading the pain is the best policy.

"I think the debate about whether this adjustment takes place before 2014, or 2015/16… is a bit academic," Mr Kelleher said.

"What we need to demonstrate is that in 2011 in particular… that we make a significant inroad into the numbers."

The Government says the final figures won't be available for another two to three weeks, when the four-year deficit reduction plan will be published.