Next Budget must include €2bn in cuts, says watchdog

The head of the Government's budget watchdog has again insisted that the Government should cut a full €2bn in the next Budget.

Professor John McHale said the public finances were still weak and that delaying pain now only increased the risk of more pain in future.

His comments come only a day after Michael Noonan confirmed he would ease back on austerity in the next Budget.

Professor McHale, who is chairman of the Fiscal Advisory Council said we could miss our EU deficit targets if we do not stick to the plan.

"We still have a year and a half of economic performance to go before we know what the ultimate number will be at the end of 2015," he said.

"The more you reduce the adjustment under the €2bn the more risk you take of missing that key milestone, which I think would be very poorly received."

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