Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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Question 70: To ask the Minister for Finance if, in view of the fact that savings amounting to €15 billion will be needed which is twice the sum that was under discussion at the time Ireland and the Commission agreed to bring our deficit below 3% of GDP by 2014, he will seek to renegotiate with the European Commission to extend the 2014 deadline; if the European Commission have expressed an opinion on the feasibility of extracting these savings in such a short timeframe; and if he will make a statement on the matter. [41573/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Over the course of the last two years, the Irish Government has taken a number of significant steps to begin the process of restoring stability and sustainability to the public finances. These adjustments were necessary because of the large gap that has emerged between revenues and expenditure. Despite the extent of the adjustments implemented so far, further measures are necessary to ensure we meet the 3% of GDP deficit reduction target by 2014. The Government remains fully committed to meeting this target and has not sought to renegotiate the deadline with the EU Commission. The Commission has indicated that it is supportive of the Government's intentions in this regard. Commissioner Rehn stated just last week that he welcomed the continued commitment of the Government to reducing the deficit to below 3% of GDP by 2014. The Government has announced that meeting the deficit target will involve an overall adjustment of €15 billion over the period 2011-2014. The Four-Year Budgetary Plan, due for publication in the coming weeks, will set out the expenditure and revenue measures required to meet this target. In this regard, a consolidation package of €6 billion for 2011 has been decided upon by Government. Commissioner Rehn has also indicated that he views this as an appropriate adjustment as it strikes the correct balance between allowing the economic recovery to strengthen and addressing the budgetary challenges in a timely and frontloaded fashion. Details on the composition of the adjustment for 2011 and the extent and composition of the measures over the remaining years of the forecast period will be announced in the Four-Year Budgetary Plan. The Four-Year Budgetary Plan will also highlight structural reform measures that will underpin future economic growth.