Ireland may not have the political will to bring its budget deficit in line with EU rules as planned by 2014 and could need six years more, the chairman of the smaller governing coalition party the Greens said. Investors and European leaders have praised Ireland for austerity measures culminating in 4 billion euros ($5.2 billion) of spending cuts imposed in last December's budget for 2010.
Green Party Chairman Dan Boyle told the Sunday Tribune it was "probably a heresy" for a government party to question whether the deficit could be cut to 3 percent of gross domestic product by 2014 from more than 14 percent in 2009.
"It is certainly doable if you want to be draconian every year," Boyle was quoted by the newspaper as saying. "But is it politically feasible and is it socially possible?" Boyle said he still expected the cabinet to deliver the 3 billion euros of savings planned for the 2011 budget in December and then the government could "take stock".
Boyle said he was making his comments in acknowledgement of a report by the International Monetary Fund, which expressed doubts over Ireland's ability to meet the 2014 target. The Green Party last year debated quitting the alliance with Prime Minister Brian Cowen's Fianna Fail party due to the strains of the fiscal tightening and bank rescue programme, but its members ultimately decided to stay on board.
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