Govt meets to finalise savings plan

The Government meets today to finalise a four-year, €15bn savings plan as International Monetary Fund (IMF) and European officials continue their audit of the State’s finances.

The Cabinet is expected to hold several hours of talks after assurances from Taoiseach Brian Cowen that the foreign mission will not enforce tougher-than-feared cuts in public spending.

The IMF-European assessment of Ireland’s financial affairs will follow the publication of the 150-page budget roadmap.

The meetings are being held under the cloud of another record low opinion poll for the government.

Less than a week from the Donegal South-West by-election the coalition was faced with strong support for the Opposition of Fine Gael and Labour.

The Red C poll for the Sunday Business Post put Fianna Fáil down one point to 17% – another damaging assessment of the party.

Opposition politicians have accused the Government of bringing shame on the State and are demanding Mr Cowen’s resignation after the symbolic blow of the IMF arriving in Dublin last week.

The Taoiseach has insisted the funding contained in any rescue package from the IMF and Europe would not force the Government to reshape its planned cuts.

The Government has also repeated its belief that its low corporation tax rate of 12.5% would not be affected by any bailout.

The fate of the economy has major international implications, with fears any deterioration may affect other eurozone states.