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 considerable risks of unwinding the efforts undertaken in recent years.
Lars Frisell is the Central Bank's Chief Economist:He says instead of easing back on the target under the EU/IMF bailout deal, a greater adjustment for 2014 should be considered:
