Michael Noonan (Limerick City, Fine Gael)
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The latest estimates of the structural deficit, both as a percentage of GDP and in monetary terms, are presented in the table below. These figures were compiled on the basis of economic and budgetary forecasts produced this spring, and were published in the latest Stability Programme Update submitted to the EU Commission at the end of April. Table 1: Structural Balance

1 To the nearest €25 million

Estimates of the structural deficit are determined on the basis of the harmonised methodology, developed jointly by the EU Commission and the Member States, to decompose the headline deficit into its cyclical and structural components. This structural deficit, by definition, excludes all one-off measures, which in an Irish context are primarily composed of fiscal supports to the banking sector.

In practice, all estimates of the structural position are subject to considerable uncertainty, the sources of which have been outlined in an annex in the latest Stability Programme Update. Nevertheless, it is clear that a significant part of the deficit is structural in nature, and so will not be eliminated with economic recovery. Therefore, ongoing fiscal consolidation is required to adequately address the budget deficit and thereby put the public finances on a sustainable footing.