Irish government targets €4bn cuts

City A.M. Reporter
IRELAND’S government is understood to be targeting target savings of €4bn (£3.5bn) in the 2011 budget as it seeks to get its fiscal crisis under control.

Finance minister Brian Lenihan said this week he would need to go above an initial target of €3bn in savings from next year’s budget and would unveil a four-year fiscal plan in November after estimating the cost of saving the banking system could top €50bn.

Citing unnamed sources, The Sunday Business Post newspaper reported Lenihan would need a €4bn package for the 2011 plan, which will be unveiled on 7 December. The Sunday Tribune, also citing unnamed sources, said savings of up to €4.5bn would be needed in Ireland’s fourth austerity budget in two years.