The Minister for Finance says he has been proven correct in his decision not to seek a precautionary overdraft for Ireland.

Michael Noonan says the State-owned banks are now able to borrow money independently which is proof that the decision was right.

His comments come after the Fiscal Advisory Council said a precautionary credit line would have helped Ireland to escape the bailout.

The budget watchdog says there is a 50/50 chance of the government missing its deficit target and more austerity may be needed.

The Council says the government ignored its advice to make €3.1 billion in adjustments in budget 2014 and that means we run a significant risk of breaching our 3% deficit ceiling.

It also says it advised the government to take a precautionary credit line when leaving the bailout and that failing to do so may not have been in our best economic interests.

But speaking in Brussels, Finance Minister Noonan says investors do not see a difference between the banks and the State.