Troika 'would have to agree' to rumoured €500m reduction in Budget cuts

The Troika would have to agree with any reduced savings target in the Budget, a former deputy director of the IMF has said.

Fri, 30 Nov, 2012 - 10:43

The Troika would have to agree with any reduced savings target in the Budget, a former deputy director of the IMF has said.

It has emerged the Government could be considering a savings target of €3bn, instead of the expected €3.5bn, thanks to a higher-than-expected tax take this year.

However, former deputy director of the IMF Donal Donovan, who is also a member of the Government's Irish Fiscal Advisory Council, said any plans to reduce the level of savings and cuts would depend on Troika approval.

"These numbers do have to be agreed with the Troika," he confirmed. "It would slightly surprise me if there were to be a significant change from that number of €3.5bn to €3bn in a relatively short space of time. €3.5bn is the number everybody has been talking about."

Even where a reduction in the level of savings and cuts is a possibility, Budget day next Wednesday is certain to bring a number of painful cuts.

According to