Government to seek € 2 billion in austerity cuts

pearse DohertyThe government has confirmed it will seek 2 billion euro of tax hikes and spending cuts in the next Budget.

It's published an update on the Irish economy to be sent to the EU, which includes 1.3 billion euro in spending cuts and 700 million euro in tax hikes.

The document comes only days after the E-S-R-I suggested the government could meet its EU targets without any new taxes at all.

However the door is left open for the government to change its mind, saying the final decision will be made closer to Budget day.

The opposition says the new document marks a u-turn from the government, which had previously discussed the prospect of cutting taxes on middle-income families.

Donegal Deputy Pearse Doherty says people cannot put up with any more austerity: