Noonan Announces More Pain on the Way

A further budgetary adjustment of €4bn will be needed for 2012 even though Ireland is meeting it’s fiscal targets under the EU/IMF bailout. The announcement was made by Minister for Finance, Michael Noonan last on RTE television.

It was originally thought that spending cuts and tax rises of €3.6bn would be needed in order to get the budgetary deficit below 3% of GDP by 2015.
However, last night Michael Noonan said that the figure could rise to around €4bn when he unveils his first budget as finance minister in December.

On an RTE programme Micheal Noonan said “Looking forward to next year we have a correction of about 4bn — 3.6 is the EU/IMF figure — to make and that’s going to be difficult, the job isn’t even half done yet. Next year, even though the overall figures are about two-thirds of this year’s adjustment, it may be more difficult to achieve … A lot of the low hanging fruit has been picked.”

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