The EU is warning the Government against raising hopes of tax cuts in the next Budget.
It says our economic forecasts have been "too optimistic" – and that MORE than 2 billion euro in adjustments will be needed in 2015.
The opposition say the report by the EC is proof the coalition has been misleading the public over the state of the economy.
The Government has been sounding out tax cuts as a “priority” for October's Budget for a number of months now – but this report could dampen expectations.
According to the EC’s Post Programme Surveillance observers, Ireland must make OVER 2 billion euros in adjustments – and has warned Ministers against raising hopes of tax relief "which can be difficult to manage".
The report – which has now been circulated to members of the Finance Committee – says the Government's been "too optimistic" with our economic forecasts.
The Department of Finance has responded to that criticism – it says it has "every confidence" in its outlook.
Stephen Kinsella is the Professor of Economics at the University of Limerick. He says the Government will be surprised by the findings – and it’s difficult to see where additional savings could be made.
