Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Question 46: To ask the Minister for Finance if he will confirm the status of the fiscal targets set out in the National Recovery Plan 2011- 2014 [5519/11]

Michael Noonan (Limerick City, Fine Gael)
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The previous Government set out a multi-annual fiscal consolidation strategy in the National Recovery Plan 2011-2014, which projected the General Government deficit being reduced to under 3 per cent of GDP by 2014. While remaining fully committed to reaching the 3 per cent of GDP deficit target, we believe that the appropriate time-scale to achieve this is over the period to 2015. It is important to point out that this additional year had already been provided for by the Ecofin Council agreement of December last and as such is entirely consistent with the views of the EU Commission. In relation to the budgetary consolidation to be undertaken in each of the years until 2015, the Government intends to adhere to the aggregate fiscal adjustment previously set out for the combined period 2011 to 2012. We believe that this level of consolidation is appropriate and that delivering on these targets will enhance our international credibility.

The details of the level of consolidation which will be necessary in the years 2013 to 2015 are currently being reviewed, in light of emerging economic and fiscal data and the extension of the adjustment period. As part of the new EU semester which applies to all Member States, revised economic and fiscal projections will be published with the Stability Programme Update next month. These forecasts will take account of the latest domestic and international data available and will present an assessment of prospects out to 2015.