Rehn comments 'a dose of realism'

Comments by European Commissioner Olli Rehn urging the swift passing of the Budget are intended to inject a "dose of realism" into the situation, a spokesperson said today.

Speaking yesterday following a meeting in Brussels with Irish MEPs, Commissioner Rehn had welcomed the planned publication later today of the four-year roadmap, but made it clear he would prefer a swifter 2011 Budget launch date than the planned unveiling on December 7.

Officials have confirmed the four-year budget plan will be unveiled at Government Buildings at 2pm.

Today Amadeu Altafaj Tardio, a spokeperson for Commissioner Rehn, said the Commisioner was injecting a dose of realism into the debate by telling Irish politicians to make economic decisions soon.

Mr Altafaj Tardio also confirmed the Commissioner is not putting pressure on the Government to raise the crucial 12.5% rate of corporation tax.

It comes as reports say the EU/IMF bailout deal being proposed is worth €85bn, and would see the State take a majority stake in Bank of Ireland, with AIB being effectively nationalised.

"We are injecting a dose of realism into the debate when we say that it is essential that the decisions are taken and are taken soon," Mr Altafaj Tardio said.

"It is only normal that we remind our partners that the sooner the better (the Budget is passed)."

Tourism Minister Mary Hanafin this morning rejected suggestions by some economists that Ireland's public debt may be as high as €340bn.

Minister Hanafin also said it would not be in the country's interest to default on any loans, and reiterated that the amount of money to be borrowed from the IMF and the EU has yet to be decided.

Meanwhile it has emerged representatives of the main Opposition parties are due to meet with the IMF delegation which is finalising details of the rescue package on offer to Ireland.

Labour's Finance Spokesperson Joan Burton said her main concern is the interest rate being charged on our repayments.

"There are lots of folks in Europe suggesting that Ireland is to be made an example of," Deputy Burton said.

"The minimum rate it looks like we might get is about 5%-5.5%," she said.

"If we get 7% - actually, the economy cannot afford it."