Hi °C | Lo °C TANAISTE Eamon Gilmore ramped up pressure for his coalition colleagues to deliver a softer Budget this year following the deal on banking debt.
The €1bn saved in the promissory-note deal with the ECB will be fully reflected in the 2014 Budget, he said.
In doing so he echoed the comments of Social Welfare Minister Joan Burton who demanded that the savings be front-loaded into the next Budget.
Labour are eager to see this happen so that voters feel the benefits in their pockets sooner rather than later, as the junior coalition partner battles a slump in the polls.
But Fine Gael Finance Minister Michael Noonan has indicated it may take some time before the knock-on effects of the promissory note deal can be worked out.
Yesterday, Mr Gilmore insisted that the deal will offer the Government crucial flexibility in addressing Ireland's economic and financial problems.
"Our estimate is that this will ease the budgetary situation by about €1bn," he said.
"This is February and that is December... We are a long way off that but there will clearly be a tangible benefit. The Budget situation will improve by €1bn and that is obviously something that will be addressed in the budgetary negotiations."
He added: "It (the €1bn) is the people's money and they want to benefit from it."
But the Labour leader refused to speculate on where the €1bn saving will specifically be applied.
Mr Gilmore acknowledged that there were those in Government who wanted to front-load the impact of the promissory- note deal to boost the economy and ease the effects of over four years of tough austerity budgets.
Social Protection Minister Joan Burton has backed demands for a softer budget given the hardship endured by taxpayers since 2008.
She warned there was "no time to waste".
Public Reform Minister Brendan Howlin has also lent his support to calls for a "social dividend" in the wake of the ECB deal.
Warning
However, Finance Minister Michael Noonan has warned that, totally aside from the ECB deal on the promissory note, Ireland must make difficult budgetary decisions and restore the State finances to bolster the return to global bond markets.
He is backed by Taoiseach Enda Kenny and senior Fine Gael Cabinet members.
But the EU Parliament and local government elections in 2014 have resulted in pressure from both Fine Gael and Labour grassroots for a tangible benefit to be shown from the ECB deal.
Mr Gilmore said the Government remains committed to restoring Ireland's finances, and ensuring the country is in a position to end the troika supervision of state finances
"We intend to say 'goodbye' to the troika and that remains the position," he said.
Irish Independent
