The Finance Minister says there is room to be flexible in the Budget next month.
Michael Noonan had previously stated he would not budge on the €3.1 billion target but has now said he is prepared to impose less cuts and taxes than originally planned.
Labour says it wants a maximum adjustment of €2.5 billion.
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The Public Expenditure Minister is appealing to the ASTI to reconsider its plans for industrial action.
The secondary teachers group is the only union to reject the Haddington Road Agreement and it last night announced that its members will withdraw from meetings outside school hours, school planning and in-service training.
The action will begin on October 2nd and run for two weeks.
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More than half of the adult population in Ireland have €100 or less left each month once they have paid their essential bills.
That is according to the latest 'What's Left' tracker from the Irish league of Credit Unions.
The survey has also seen a rise in the number of people managing to save each month.
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Gardai are continuing to appeal for information following yesterday's fatal stabbing in Smithfield.
At around 2.30pm a 51-year-old man was found in his house on Ormond Square by a neighbour.
He had been stabbed several times in the neck and body and died at the scene.
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Kenya says its security forces are in control of the Nairobi shopping centre where Islamist fighters killed 62 people.
Earlier a loud burst of gunfire was heard from inside the complex.
Meanwhile Kenya's Foreign Minister has claimed a woman from Northern Ireland and "two or three Americans" are among those involved in the attack.
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A symbolic meeting between US president Barack Obama and the new Iranian president Hasan Rouhani could take place in New York later.
There has not been a face-to-face meeting between the leaders of the two countries since 1979.
Mr Obama and Dr Rouhani are in New York for the annual meeting of the UN General Assembly, and there has already been an exchange of letters between the leaders.
