MINISTER FOR Finance Brian Lenihan said yesterday he was not under pressure from Europe in relation to his indication this week that cuts beyond the €3 billion already signalled might be necessary in the budget.
Speaking at yesterday’s conclusion of the Fianna Fáil parliamentary party conference in Galway, he said the Opposition was “very welcome” to inspect the “books”.
Mr Lenihan referred to the “very substantial” decline in gross domestic product in 2009.
“There isn’t any other economy in the developed world that has emerged from a decline as deep as that, and has resumed growth as quick as we have,” he said. “We only have to reflect on last year’s budget to see that when we make the necessary adjustment, it can create confidence.”
“What’s required from us in the Government is decisions,” he said, and the Taoiseach, himself and colleagues were “committed to making those decisions”.
Taoiseach Brian Cowen said Mr Lenihan had his “full confidence and support”, and the Government had agreed with the European Commission on “the range of adjustments that are necessary”.
The Government would “fulfil those obligations to the full, to the letter and to the spirit”, Mr Cowen said.
Minister for the Environment and Green Party leader John Gormley said the Cabinet had not discussed cuts in excess of €3 billion. “We haven’t had detailed Cabinet discussions as of yet on the budget, we intend to intensify those discussions over the coming weeks.”
Ireland has committed to the commission to reduce the budget deficit to below 3 per cent by 2014, he pointed out.
“Failure to meet that particular target could again cause difficulties for Ireland in terms of borrowing costs so we’re intent on achieving those savings. It is going to be difficult obviously but we think it can be done and it has to be done in a fair and sustainable manner.”