Reality bites as McCreevy faces facts

THE pall of gloom hanging over the economy has been deepened

Coming hard on the heels of a bleak ESRI forecast, the economic situation looks increasingly depressing as Finance Minister Charlie McCreevy admits for the first time he will have to borrow heavily.

The normally ebullient minister has been forced to eat his words and admit a budget deficit is looming. Mr McCreevy now faces the unpalatable prospect of having to borrow to fund a projected deficit of €750 million amid an unexplained tax shortfall of €1.3 billion. This figure dramatically surpasses previous forecasts and will deepen the growing mood of depression surrounding the economy.