Irish 'must stick' to the targets set for budget
Taoiseach Enda Kenny has said that the Republic's government must stick to its budgetary targets to its bailout agreement, but has not given any indication as to whether there will be any let up in austerity.
Mr Kenny was speaking after the Irish government think tank, the Economic and Social Research Institute (ESRI), said the coalition must stick to its plans for €3.1bn (£2.7bn) in cuts and taxes in the October budget.
It came after unions and employers called on the government to use the €1bn (£0.86bn) promissory note deal to ease up on austerity.
The taoiseach said the ESRI "endorses" his government's approach, but did not give any indication that ministers will change their plans for the Budget.
Mr Kenny also said there will be a special cabinet meeting on job creation next week.
The ESRI warned earlier that the Irish government risks needing even bigger packages of spending cuts and taxes in the coming years if it eases up on austerity in October's budget.