The permanent head of the IMF mission in Ireland has suggested the government has some leeway in the next Budget.

Peter Breuer says Ireland should implement a full 5.1 billion euro of budget cuts over the next two years.

But - he didn't say that a full 3.1 billion euro of those cuts needed to be made in October's Budget.

Breuer, told the MacGill Summer School in Co. Donegal that two more years of tough budgets would be enough to reach the EU's overall budget targets: