The Commission warns that key government assumptions may be too optimistic. It wants more specific steps to be detailed now.
The Commission wants the Government to set out now the specific measures it plans to take in the coming years, while Brian Lenihan had said future measures would be decided only at budget time year by year.The European Commission has told the Government to stand ready to intensify its austerity drive after warning that key assumptions underpinning its economic recovery plan may be too “optimistic”.
In a blunt assessment of a programme that already foresees €3 billion in new cutbacks and tax measures in 2011 and a further €3 billion in 2012, the EU executive says the plans for the entire 2011-2014 period should be strengthened to avert the risk that targets might be missed.
“As regards Ireland, yes, the scenario is assessed to be on the optimistic side. In particular in the outer years, the growth assumptions look quite optimistic to us,” a senior Commission official told reporters.
EU warning over Irish recovery plan - The Irish Times - Wed, Mar 17, 2010
In a new review of his recovery plan, however, the Commission warns that the strategy from 2011 onwards “may not be consistent” with recommendations from the European authorities.
“In particular, the deficit targets for 2011-2014 need to be backed up by concrete measures and the plans for the entire period need to be strengthened to address the risks from less favourable GDP growth and slippages on the expenditure side."
Here is the Commission language:
http://europa.eu/rapid/pressReleases...guiLanguage=enOriginally Posted by Commission