Michael McGrath (Cork South Central, Fianna Fail)

I thank the Minister for his response. We all hope the tentative recovery in our economy that we are witnessing takes root and develops further in 2012. The forecast for 2012 is for an adjustment of €3.8 billion, yielding a deficit of 8.6% on the button. There is therefore no room whatsoever for slippage on the outturn for 2011, on the income and expenditure side for 2012, or indeed on the growth side for 2012. What might cause alarm is the fact that the European Commission has predicted that growth in Ireland next year will be 1.1%, which is a full half percent less than what the Department of Finance estimates. If that were to materialise - and we hope it does not - it would result in the need for an extra adjustment of about half a billion euro to bring the deficit within 8.6% of GDP. Is the Minister concerned that we may still be too optimistic on the growth side for 2012? If we are being overly optimistic, and that becomes clear in the early part of next year, is he committed to achieving a deficit of 8.6%, come what may?

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