The Taoiseach says the Government will be able to take Irish Water off its books, despite concerns expressed by the European Commission.
A Commission report says 'it's unclear' whether or not the utility will be able to borrow money independently, and it would be a serious risk to the State's finances if Irish Water was to fail independent tests in April.
The report also calls on the Government to take "decisive" action to address economic "imbalances" - including unemployment and debt levels.
Taoiseach Enda Kenny says the coalition is managing the recovery, and says Irish Water's funding model is secure:
The Junior Finance Minister says the Government is 'confident' Irish Water will pass European market tests, despite the European Commission report expressing serious doubts over the utility's funding model:
The new report from the European Commission is warning that decisive action must be taken to address imbalances in the Irish economy.
The review was published today that despite improvement, risks still exist - including unemployment, concerns about the banking sector and the high level of private and public debt.
The Irish Times reported the commission is also raising concerns about the funding model for Irish Water, warning it may not be in a position to fund and borrow on the markets.
It also says the Government should press ahead with the planned reform of the Junior Cert.
The report claims there are a number of risks to recovery - including high structural unemployment, public and private debt levels and lingering concerns about the state of the financial sector.
The Commission is calling for the Government to take "decisive action" to address its concerns - including its claim that Irish Water will be dependent on centralised funding for "some time".
It also says the extent to which the utility will be able to borrow on the markets is 'unclear'.
The report also highlights a skills gap in technology, and calls on the coalition to press ahead with Junior Cycle reform.
Europe Correspondent with The Irish Times, Suzanne Lynch, spoke to Newstalk Breakfast this morning about the details of the report:
Ivan and Chris discussed the report this morning and raised concerns about the report which would be released this morning.
Ivan said that they have become political commentators and asked: "What are you doing about the reforms that will make us more competitive?
"These issues about Irish Water, about reducing the cost of legal service in this country, improving the skills base amongst workers in our labour force and among young people to help them get jobs. Those are all things that the government need to do.
"This is a government that has run out of energy, run out of ideas, and basically they look tired to me.
"I see nobody in the Opposition with the energy, just more inertia."
