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IMF warns Ireland to maintain fiscal path

The International Monetary Fund on Wednesday warned Ireland against a giveaway budget ahead of next year's general election but backed calls for greater spending flexibility from the European CommissionThe International Monetary Fund on Wednesday warned Ireland against a giveaway budget ahead of next year’s general election but backed calls for greater spending flexibility from the European Commission. “Ireland’s recovery is off to a good start and the priority is to maintain solid growth and job creation,” the IMF said in a report on the eurozone nation’s economy. Dublin’s coalition government must call a general election by April 2016 and latest polls show both parties facing a significant loss of seats as anger over tax hikes and spending cuts has boosted support for opposition parties and independents. This month, both Irish Prime Minister Enda Kenny and Finance Minister Michael Noonan urged the European Commission for more flexibility in EU budgetary rules to allow Dublin to increase investment in its next budget.

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