19 MAY 2011
Dan O'Brien | Irish Times
THE EUROPEAN Commission yesterday raised the possibility that Ireland could implement a faster and deeper budget adjustment programme.
In its most detailed assessment yet of Ireland’s adherence to the terms of November’s EU-IMF bailout, the commission said “it is essential that Ireland meets and, if possible, exceeds the agreed fiscal consolidation objectives”.
The commission is one member of the troika of international organisation’s overseeing Ireland’s bailout. The European Central Bank and the International Monetary Fund are the others.
Following a budget adjustment this year of €6 billion, a further €3.6 billion is scheduled for 2012.
On Tuesday, Minister of State for European Affairs Lucinda Creighton said a larger adjustment could be contemplated next year. The commission’s report, which covers the period up to the end of March, found most of the conditions of the bailout had been met. This will allow a second tranch of bailout funds, worth €3 billion, to be released.
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