The Central Bank is urging the Government to stick to the planned €3.1 billion adjustment in the budget.
In its latest Quarterly Economic Bulletin the bank says, while very significant action has been taken, there should be no easing back on the target.
It says any scaling back on spending cuts and tax hikes at this point carries with it considerable risks of unwinding the actions undertaken in recent years.
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The Central Bank's Chief Economist Lars Frisell is recommending a greater adjustment than €3.1 billion:
