Ireland Suggests Radical Budget Cuts

The second day of the Irish Republic's Fine Gael party 'think-ins' is ongoing with the Taoiseach saying that the government will not rule out tax cuts but also revealing EU's outlook on Ireland is improving.

Taoiseach Enda Kenny said that the government was committed to cutting the deficit to 8.6 % next year and that increasing savings of €3.6bn to €4bn were required to make this saving.

Talking to RTE Mr Kenny (pictured) said: "Everything is on the table, we're prepared to be radical in what we will drop."

In response to queries as to whether the government would go against their election promises and raise taxes Mr Kenny said the situation since the election has changed.

He explained that he would enter talks and tax increases could not be ruled out.

With regard to those who are burdened with unaffordable mortgages he outlined that government would strive to make decisions that are fair.

Mr Kenny said: "People over-borrowed during the Celtic Tiger years and the banks threw around loaned money like it was confetti. Now that the taxpayer has capitalised the banks we will have to ensure that decisions that are made are fair."

Meanwhile, despite the country’s problems, Mr Kenny has revealed that EU opinion toward Ireland has changed for the better.

According to the Taoiseach the decisions made in July,when the terms of the EU/IMF loan were changed, gave the opportunity to the country to get its house in order.

The Fine Gael Parliamentary Party began its two-day 'think-in' in Galway yesterday.

The largest Fine Gael Parliamentary Party gathered for the first time since the election to review the party's performance leading the Government.

The Taoiseach will have to keep his nerve and reassure his TDs that acting in the national interest will be to their advantage in the end.

Before that the party must have a good result in the presidential election and Fine Gael's candidate Gay Mitchell may have to quell some residual doubts about his ability to attract cross-party support.

It is understood that today Gay Mitchell, will set out his stall and will hear the views of his own colleagues on the kind of campaign he should run.

Also See: FG Begins Two-day 'Think-in'

(LB/CD)