Róisín Shortall (Dublin North West, Labour)
Link to this: Individually | In context

Question 71: To ask the Minister for Finance his views on the publication by EUROSTAT of 2009 data on EU Governments' deficits and debt burdens which showed Ireland to have had the biggest general Government deficit of any EU Member State for 2009; and if he will make a statement on the matter. [25628/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

On April 22nd Eurostat published fiscal data which showed a General Government Deficit of 14.3% of GDP for Ireland in 2009. This figure is a revision of the Budget day estimate of 11.7% of GDP due to a technical reclassification of a €4 billion investment by the government in Anglo Irish Bank.

However, there is no additional borrowing as a result of this technical reclassification. The underlying General Government Balance excluding this reclassification is 11.8% of GDP, which is broadly in line with the Budget day estimate.

This reclassification is a once-off adjustment that only impacts on 2009 and does not affect the forecast for a General Government Balance of the order of 11 1⁄2 % of GDP for 2010. That said, it is important to note that our deficit is very high and this is why we have taken the various series of measures since July 2008 to strengthen the budgetary position. Furthermore, it points to the need for continued fiscal discipline and further adjustments.

In that context, Ireland's fiscal targets have not changed in light of these statistical returns, and the Government's agreed target to reduce the General Government Deficit to below 3% of GDP by 2014 still stands.