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ECONOMY: Government advised to make further cuts

EU ECONOMICS commissioner Olli Rehn believes the Irish Government should press ahead with further austerity cuts in next year's Budget.

Mr Rehn said that the Government should not be put off course by the "formidable" challenge of resolving the banking crisis and said that there were close contacts between the Government and the commission over the "financial repair" issues arising from Anglo Irish Bank.

"The Irish Government is currently reflecting steps in fiscal consolidation and I see that it's very important that Ireland will maintain its rigorous approach as regards public finances, despite this formidable challenge now because of the financial repair."