Troika: Govt does not have to raise taxes or cut welfare

The Troika is giving the Government the green light not to hike income tax or cut basic welfare rates in December's Budget.

It is the first time the IMF, the ECB and the European Commission has said the terms of the bailout can be met without going ahead with these measures.

The group also seems to be giving room to the Coalition on the sale of State assets, saying it is the structural reform it gives rather than the amount raised is what's important.

The latest review of the €85bn programme said it is on track, but warns Ireland is "not out of the woods yet".

The European Commission's Istvan Szekely said the Troika has been convinced the Government can meet targets, without breaking promises on tax and social welfare.