Rehn: Ireland could be facing deeper budget cuts

Ireland could be facing even deeper cuts in next year’s budget, with continuing job loses and falling domestic demand threatening the country’s fragile recovery.

European economics commissioner Olli Rehn said the depth of future cuts will depend on the troika’s next quarterly detailed analysis of the economy, due in April.

This comes on top of the change in the latest memorandum of understanding that inserted the words “at least” into the budget reduction of €3.8bn for next year. And it contradicts the Government’s expectation of 1.3% growth for 2012.