GDP target 'completely unrealistic', O Caolain tells Rehn

Sinn Féin Dáil leader Caoimhghin O Caolain has today EU Economics Commissioner Olli Rehn to go back and tell Europe that Ireland cannot cut its Budget deficit to 3% of GDP by 2014.

“I and my colleagues Deputy Arthur Morgan and Mary Lou McDonald this morning informed the European Commissioner Ollie Rehn that Sinn Féin will not be part of any consensus that seeks to cut €6bn from the economy next year hitting low earners and vital public services hardest,” Mr O Caolain said.

“We informed Commissioner Rehn that the 2014 target for reducing the Budget deficit to 3% of GDP is completely unrealistic and unachievable.”

Joan Burton, Labour Party Finance Spokeswoman, said she told Mr Rehn her party backs the target of slashing the Budget deficit to 3% of the value of the economy by 2014.

“Our view is very much that while Ireland has responsibility to Europe and to the Eurozone, the European Union has responsibility towards Ireland,” Ms Burton said.

“And, in particular, we wanted to let the Commissioner know that in our view there will be no economic recovery in Ireland unless the budgetary strategy also contains a strategy for growth and employment and job retention.”

Ms Burton said the Commissioner did not have a date for the Government’s four-year plan to be published.