Warning from EC on changes to aid package

THE new Government got advance warning from the European Commission last night that it cannot change the goalposts of the agreement for the€67 billion EU-IMF loan.

But in a note of encouragement, Economics Commissioner Olli Rehn said the country’s massive public debt was sustainable, provided the programme measures were implemented and growth was as forecast by the EU and the IMF.

On the question of reducing the 5.8% interest on the loan, he said that while the Commission supported a cut, it depended on the EU states agreeing the comprehensive package at the March 24 summit.