The document discusses Ireland's need for fiscal consolidation given its large budget deficit and rising debt levels. It notes that without policy changes, Ireland's general government budget deficit will exceed 10% of GDP in 2009 and its gross government debt will reach around 50% of GDP. If annual borrowing remains above 10% of GDP, Ireland's debt could reach 100% of GDP fairly quickly. The document argues that significant cuts to current and capital government spending are required to reduce borrowing and contain the growth of debt. Further tax increases may also be needed to achieve fiscal consolidation.