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European Commission tells government 'stand ready' for more austerity

The government is being told by the European Commission and European Central Bank (ECB) to "stand...
Newstalk
Newstalk

16.57 21 Nov 2014


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European Commission tells gove...

European Commission tells government 'stand ready' for more austerity

Newstalk
Newstalk

16.57 21 Nov 2014


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The government is being told by the European Commission and European Central Bank (ECB) to "stand ready" to implement more austerity if necessary.

The warning is contained in a statement following their post-bailout inspection to Ireland this week.

They say that the deficit may now be slightly higher than predicted on budget day, but will still fall well within targets.

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There is no mention of water charges, but they call for more to be done in bank lending, sorting out mortgage arrears, controlling health overspending. They also note the delay in the reform of legal services.

The Commission state "despite significant progress, the macroeconomic adjustment process needs to continue and important challenges remain. Unemployment – particularly long-term and youth unemployment – remains high. Deleveraging of public and private debt is progressing, but the debt overhang remains a significant challenge to the economy... The recovery in the banking sector is still on-going."

However, the Commission was positive about other aspects of the Irish recovery, saying "the economic situation has continued to improve in Ireland since the end of the EU/IMF-financial assistance programme, with the recovery broadening".

Another inspection will take place in spring 2015.

Their comments come after the Taoiseach Enda Kenny played down any fears the Troika might have about Irish Water failing a crucial EU financial test.

After facing hundreds of water charge protestors in Cork, Mr Kenny said the new water scheme was designed specifically to pass the test.


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