There is scope to ease austerity in the upcoming budget, Fianna Fáil finance spokesman, Michael McGrath has said.
The Central Bank earlier called on the Government to resist the "temptation" to reduce the planned cuts and taxes amounting to €3.1 billion expected in the 2014 budget, which will be unveiled in October.
Mr McGrath told The Irish Times that "in principle" some of the savings from the promissory note deal should be used to bring about additional investment and ease austerity.
“Our view as a party is that some relief should be given to the Irish people,” he said. “The deal does allow some scope to move in that direction”.
While the Cork South Central TD said it was too early to be definitive about the figures in the upcoming budget he emphasised that deficit reduction targets should be achieved.
He added that it appears this could be done while reducing austerity measures and increasing investment.
“There are external factors so we need to see how those can play out over the summer months.” he said. “We do believe in principle that there is scope to reduce austerity and provide additional funding for investment but we won’t put a final figure on it until september.”
The head of the country's largest trade union Siptu, Jack O'Connor. agreed the promissory note deal afforded "breathing space" to reduce the fiscal adjustment to €2.1 billion and said that the Central Bank's advice "is blackmail on a monumental scale".
"It is quite clear that there is a well-orchestrated campaign by those at the top of the banking system in Ireland and in Europe, who caused the crisis in the first place, to inflict totally unnecessary misery on our society," he said.
Mr O’Connor added that the Haddington road agreement with the public sector and tax measures from last year’s budget will account for savings of almost €1 billion.
The Society of St Vincent de Paul said that the calls from the Central Bank “demonstrate a one-track mind-set” and will cause “even further hardship for thousands of Irish people”.
“The people we assist and those who are struggling throughout Ireland have suffered enough,” the charity said in a statement. “ All people in Ireland deserve a living income in and out of work but the level of austerity imposed over the last six budgets has made this aspiration impossible for thousands of individuals and families”.