ECB board member praises Government expenditure cuts

A member of the European Central Bank's executive board said today that substantial challenges remain ahead for Ireland.

Jorg Asmussen stated that ambitious structural and financial reforms are required to address the ongoing economic difficulties.

The former Secretary of the German Finance Ministry admitted that the process is proving long, painful and enormously difficult.

He said that some of the reforms will take time to show full effect, but their capacity to improve the situation for ordinary citizens should not be underestimated.

"Even though considerable progress has been made, we are still a long way before the situation normalises," he said.

"And there is considerable work to do on fiscal and structural reform, but the Government has rightly embarked on the path of progressively cutting expenditure while taxes have had to increase."