Ireland is being warned to tighten its belt again.

The Government's Spring Statement claims there's room for €1.5bn worth of tax cuts and spending increases, but the European Commission and IMF say a more stringent budget is needed next year.

According to the Irish Times the Commission thinks the country needs to cushion itself against future shocks and accelerate debt reduction.

The troika partners were in Dublin this week for the first of two annual inspections charting the State's progress since leaving the bailout.

However the IMF believes the Spring Statement - which was widely ridiculed in Irish media - is moving 'broadly in the right direction.'