Coveney: Budget has to balance austerity and stimulus

A senior Cabinet Minister has said October's Budget has to strike a balance between stimulating the economy and meeting financial targets.

Agriculture Minister Simon Coveney was speaking as the Cabinet meets for the first time since the summer break.

October's budget will form a large part of this morning's agenda, and it is understood there is some division between the Coalition partners.

Both Fine Gael and Labour want to ease back on the planned €3.1bn in cuts, but differ when it comes to how the money saved should be spent.

Fine Gael Minister Simon Coveney said there will be long discussions ahead.

He said: "We need to balance this Budget. On the one hand it needs to continue on the route of correcting the deficit that is still there, we are still borrowing a billion euro a month.

"But at the same time, we need to create jobs and we need to create some stimulus, optimism and momentum in the economy.

"That's the balance that we have to get right in this Budget."