BRUSSELS (MNI) – The European Union welcomes Ireland’s commitment
to cut its budget deficit back to the EU limit by 2014 and stands by
Ireland in its time of crisis, European Commissioner for Economic and
Monetary Affairs Olli Rehn said on Tuesday.
“I have no doubt that Ireland…will overcome this crisis,” Rehn
said, according to the text of a speech delivered in Dublin.
“Time and again you have proved you can overcome adversity. And
this time you do not face the challenges alone. Europe stands by you,”
he said.
Irish sovereign debt spreads have widened dramatically in recent
weeks as investors increasingly fear that the country won’t be able to
manage its debt burden without outside help.
The costs of the banking system will push Ireland’s budget deficit
to 32% of its GDP this year. The Irish government has committed to
getting the deficit below the EU’s 3% limit by 2014. Stripping out the
banks, the deficit is around 11% this year, still the largest in the
Eurozone.
“We all know that adjustment takes time,” Rehn said in his speech.
“It also takes determined and sometimes painful decisions: it
requires political courage and political and social dialogue,” the
Commissioner said.
He welcomed the Irish decision to find budget savings of E6 billion
next year to meet its targets and said he looked forward to seeing a
more detailed plan from the government next month.
“Ireland has strong economic fundamentals which have delivered
economic successes,” Rehn said.
“Taking the necessary structural measures to support fiscal
adjustments will pay off in the medium and long term for both
sustainable growth and job creation,” he added.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
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