Brendan Keenan: Deadline for reducing deficit extended to 2015
The deadline for reducing the deficit to 3pc of GDP was extended by one year to 2015, to reflect lower growth estimates from the EU Commission and the costs of the bank recapitalisation.
This will not reduce the €15bn correction in tax rises and spending cuts outlined in last week's four-year budgetary plan.
The plan was based on growth of 1.75pc next year and a strong recovery in 2012. Most analysts regard this as too optimistic and the EU has now agreed with them.