Noonan: I’ll put away billions for a rainy day
■ Trichet made 'no direct threat' over bondholders
Finance Minister Michael Noonan is planning to set aside billions from the resources available to the next government to create a 'rainy day fund'.
The move means Fine Gael will not be promising to put all the predicted proceeds of economic growth - not windfall gains - into tax cuts and spending.
In an exclusive interview with the Irish Independent, Mr Noonan said: "The reserve will be a fiscal buffer against unexpected shocks." The cash will be allocated in the Budget either to reducing the national deficit or extra spending, depending upon what the economy needs at the time. The Government will also take on board the advice of the Fiscal Advisory Council.
Meanwhile, Mr Noonan says "no direct threat" was made by Jean-Claude Trichet the European Central Bank to prevent the burning of bondholders.