Budget gets Europe seal of approval

THE European Commission will not object to Ireland’s massive budget deficit this year, but will hold the country to reducing it dramatically over the next four years

A spokesperson for the body tasked with ensuring euro area rules are kept described Tuesday’s emergency budget as “decisive, broad-based action in very difficult economic circumstances”.

Under the Stability and Growth Pact no euro member’s budget deficit should be more than 3% of GDP. Ireland said in January it would reach 9.5%, but revised this up to 10.75% in the budget.