Belfast Telegraph

Ireland advised to stick to austerity

The Irish Central Bank has warned the government not to ease off on austerity.

It said the move could reverse the gains made to date for the sake of a "relatively small short-term fiscal easing".

In its latest Quarterly Bulletin the bank said it had marginally revised growth for this year and next year to 0.5% and 2% respectively – down 0.2% and 0.1%.

"Scaling back of the planned fiscal adjustment runs the risk of starting to unwind the positive effects of the considerable consolidation effort to date, amounting to around €28bn (£23.4bn)," the bank said.

It added Ireland is due to leave the bailout programme at a time when deficit and debt levels remain high.

"Market participants will focus on how Ireland is likely to perform outside the programme."

Belfast Telegraph