Honohan Says Ireland's Fiscal Slide Worse Than `Almost Any Other' Nation - Bloomberg
Not sure what exactly is meant by “intensified corrective action” but given that the 10 year is approaching 7% again. I think €6bn is the minimum needed to get back into the markets in the new year.Irish Central Bank Governor Patrick Honohan said Ireland’s fiscal deterioration has been “worse than almost any other country” and tougher action is required to reduce the deficit.
The decline partly reflects the fact that the “home-grown property bubble had risen further and so has fallen further than most,” Honohan, who is also a member of the European Central Bank governing council, said in a speech in Dublin today. The government has been “struggling” with the deficit for the past two and a half years and it will now be subject to “intensified corrective action,” he said.
Ireland’s government yesterday announced plans to seek 15 billion euros ($21 billion) in spending cuts and tax increases to lower its budget deficit to within the European Union limit of 3 percent of gross domestic product in 2014. The shortfall will be about 12 percent of GDP this year, or 32 percent when bank-bailout costs are included.
Finance Minister Brian Lenihan said the plan will include “significant” measures in 2011 to restore investor confidence and lower borrowing costs.