The European Commission has said that the hospital doctors are paid high salaries and the patients could suffer if their salaries are not reduced.

Health Minister James Reilly said in a leaked report that the salaries of the doctors must be reduced as they are the highest paid in Europe at present. The Commission said that if a cut is not made in their salaries, necessary hospital services might have to be cut. It also said that the doctors who do not prescribe cheap generic drugs to face penalties under the sytem.

The leaked report for progress in the bailout programme also said that salaries and allowances in some other public sector jobs might be cut. The report warns that the country might have to form tough Budgets as the Commission reduced Ireland's growth forecast from 1.4 per cent to 1.1 per cent.

The Commission noted that it is impossible for the government to achieve targets of health spending cuts in the agreed period of time without cutting salaries or other costs, which would affect hospital services. The report is contradicting to the assurances given by the government that the spending cut targets could be met while maintaining hospital services.