We've taken the pain; austerity ends next year: ESRI

The Government might not have to impose any new cuts, taxes or charges on the public in next year's budget, according to a senior economist at the ESRI.

The ESRI has today published its latest quarterly update.

It is forecasting GNP growth of 3.5% this year, and says the Irish economy is now recovering "quite vigorously" from the downturn.

Professor John Fitzgerald said that apart from the water charges already in the pipeline, the economy does not need much adjustment.

"If our forecasts were right, next year, barring the water charges, you probably wouldn't need any more cuts," he said. "You'd see an end to austerity.

"However, if you use an EU methodology, which we think is inappropriate, they'd be saying you need more cuts, and more cuts.

"Our estimate is that the bulk of the work is done and we could wake up next year and say 'Actually, it's all over'."

KEYWORDS: Budget 2015
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