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Rehn advises we stick with austerity

Monday, February 25 12:18:02

The E1bn savings made on the so-called Prom Deal should not be used as an excuse for Ireland to stray from the path of fiscal rectitude and Ireland should stick to its fiscal targets, EU Commissioner on Economic and Monetary Affairs, Olli Rehn said today.

Speaking on RTE's Morning Ireland, Olli Rehn said the money should not be used to "soften" next year's budget and that Ireland should stick to the EU/IMF programme.

"The debt service is very costly for the Irish citizen, the Irish taxpayer," Rehn said. "It is very important to stick to the fiscal targets and ensure that the debt burden can be reduced in due course."

"I have heard that this has been in some discussions, referred to as windfall gains from the deal on the promissory notes. I'm a bit surprised by that," Mr Rehn said. "It's very important to stick to fiscal targets and ensure the debt burden can be reduced in due course. It is essential that euro area member states respect the commitments that have been taken."

He added that there was no time for complacency in dealing with the euro zone's debt crisis, added that he was confident Ireland would be able to exit its EU-IMF bailout schedule and return to regular market funding on schedule later this year.