Ireland announces 6 billion euro cuts budget

The Irish Government will impose a 6 billion euro cost-cutting Budget next month in an attempt to restore the country's crippled finances.

Finance Minister Brian Lenihan unveiled the staggering scale of savings needed - up to 16 billion euros over the next four years in a bid to revive international confidence.

Mr Lenihan revealed that the savings over the next four years stretch to 3-4 billion euros in 2012, 3-3.5 billion in 2013 and 2-2.5 billion in 2014.

The figures for the total timeframe are about double what had been forecast a year ago.

The Government's pre-Budget outlook said it hoped to raise three times as much money next year through cutting spending than increasing taxes.

Mr Lenihan added: "I want to stress again the strength of the Government's resolve to return the country to a sustainable fiscal position. I am well aware that such measures will impact on the living standards of everybody.

"But our spending and revenues must be more closely aligned. This is the only way to ensure the future economic well-being of our society."