Ireland's structural deficit could take until 2020 to become compliant with the European Union's fiscal compact, according to an economic letter published by the Central bank of Ireland on September 25.

At the centre of the compact, formally known as the Treaty on Stability, Coordination and Governance, is the requirement for countries to achieve a budgetary position that is "balanced or in surplus" within five years. This must include progress towards each country's medium term objective –