November 4, 2010 / 2:23 PM / 9 years ago

Trichet: 15 billion euros Irish cuts should be enough

FRANKFURT, Nov 4 (Reuters) - Irish government plans to cut by 15 billion euros over the next four years should be sufficient to solve its debt crunch, European Central Bank President Jean-Claude Trichet said on Thursday.

“The 15 billion ... are not in our view insufficient but of course you have to be alert permanently and stand ready to do all that is needed,” Trichet told a news conference. “But I have no negative appreciation of the 15.”

With borrowing costs breaching record highs every day this week, Finance Minister Brian Lenihan will unveil next year’s budget goal and economic growth forecast at 1630 GMT.

Lenihan has pledged to get the worst shortfall in Europe under control by narrowing Ireland’s budget gap by 15 billion euros over the next four years.

“The market observers, savers, investors are looking with great, great attention to what the minister and the government will say in a few hours,” Trichet said.

“This message of the government, which will be a message on particularly the front loading of the programme is of extreme importance,” he said.

“I have no reason myself to think at the present the moment that the observers will be disappointed.”

Ireland will seek to make cuts and savings of 5-6 billion euros ($7.0-8.4 billion) for 2011 in next month’s budget, two Irish newspapers reported on Thursday quoting coalition and government sources.

The premium investors demand to hold Irish bonds over benchmark German bunds hit a fresh high on Thursday, widening by 16 basis points to 535 bps.

Editing by Ron Askew

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