Post bailout plan to follow troika style templates

The post bailout medium term economic plan to be published later today will follow a troika-style template to reassure international investors the Government is serious about continued reform and fiscal discipline.

Senior Coalition figures also acknowledged there is a political dimension to the plan, and claim it will lay down a path which it hopes the opposition, and Fianna Fáil in particular, will find difficult to deviate from.

It will contain chapters on areas focused on by the troika during the bailout such as fiscal targets, banking and credit flow and structural reforms.

The plan was finalised last night and is expected to be signed off by the Cabinet this morning, with publication following later today.

There are also chapters on jobs and living strategies and a list of initiatives to be undertaken by the Government, with the goal to increase employment back above 2.1 million people by 2020.

This would replace "all the jobs destroyed during the crisis under the last Government", a source claimed.

Tough budget
The plan will also say one more tough budget is needed, and austerity will end in 2016. Economic growth, rather than cuts and taxes, will then become the driver to reach EU and deficit targets.

It will also emphasise the Government’s reform efforts, particularly in the areas of social welfare and the legal and medical professions, saying the Coalition is “more committed than ever” to promised legal reforms.

"There are a number of audiences, the international audience who you want to show you're pressing on with reforms and you don't want the people in DSP [Department of Social Protection], FÁS [now Solas] or EI [Enterprise Ireland] there will be some let up," a source said.

It is understood it will outline details of how initiatives like the Strategic Investment Fund and New Era will be used, as well as measures regarding funding for small and medium enterprises and accessing non-bank credit through areas like venture capital.

Deficit targets
The commitments to deficit targets will also be tailored to international audiences who may not be fully aware of EU obligations the Government must adhere to.

"We all know there are EU rules about the deficit but there are people outside Europe who don't know about them," the source added.

Meanwhile, the HSE service plan is also expected to be discussed at Cabinet this morning, with indications there will be some leeway in the €666 million in cuts outlined in the budget.

Government sources have suggested there could be a scaling back of the €113 million target for medical card probity test savings. Another key issue will be plans to save €108 million under employment controls and the Haddington Road deal.

Government sources said service levels would not be cut under the plan and there would be no closures of facilities.

While the HSE had been asked by Government to generate savings of €666 million next year, it warned this figure could rise to €1 billion when promised, but unfunded, investments such as in maternity services were taken into account.