ECB’s Asmussen Warns Ireland Should Not Abandon Austerity

Ireland should not ease up on austerity in its annual budget next month but stick to a target of 3.1 billion euros ($4.2 billion) worth of spending cuts and tax hikes, European Central Bank (ECB) Executive Board member Joerg Asmussen said on Saturday.

Ireland has beaten several targets under its bailout, leading to calls by government ministers for a more modest fiscal adjustment for next year than agreed with lenders the European Union, International Monetary Fund (IMF) and ECB.

“I would really suggest to stick to the budget plan for the next year and to stick to the figure of 3.1 billion” euros, Asmussen said in an interview with Irish state broadcaster RTE.

“It is crucial the authorities stick to the programme’s objectives as they have done to ensure the country remains on a sustainable path,” he said.

via CNBC

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