The deal agreed on the promissory notes is a hugely significant step forward in our economic recovery. The immediate effect of this agreement will be a reduction of €1 billion in the budgetary adjustment required next year.
Cash flow is the lifeblood of businesses, without it they struggle to survive. This deal helps the cash flow of our country, making it easier to deal with our remaining budgetary challenges. Thanks to the savings delivered as part of the deal, the budgetary adjustment needed for next year will be €1 billion less. Over the next decade our borrowing requirements will be reduced by €20 billion, greatly helping our long term economic sustainability and our prospects for growth and job creation.
This deal is another successful effort in renegotiating the financial obligations which were a burden on every person in our country. Since it came to office this Government has renegotiated the interest rate, saving €10 billion, it achieved €5.8 billion in burden sharing with subordinated bondholders, and now it has renegotiated the promissory notes. At each turn we were told what the government was trying to achieve could not be done. However, working with and not against our European partners has delivered real and significant savings for the Irish people.
While initially the debts of Anglo Irish Bank were not public debts the decisions of the previous Fianna Fail led Government loaded those debts onto the shoulders of the Irish taxpayer, making them national debt in the form of promissory notes. This Government has secured an agreement that makes these debts more sustainable, helping our country get off its knees.
The efforts made by the Irish people have generated widespread goodwill across the EU. In spite of the difficulties their efforts have ensured that we are the best bet to get back to the markets. Their efforts have made it possible to get a deal that makes our debt more sustainable. Eliminating the promissory notes now ensures that they can directly benefit from the reduction by €1 billion in the budgetary adjustment required next year, that is €1 billion less in taxes and cuts.
Members of Government have worked tirelessly to deliver this deal; I would like to pay particular tribute to the efforts of the Taoiseach and the Minister for Finance. Although this deal does not solve all of our difficulties it does greatly improve our chances for restoring our economic sovereignty. It will give the Irish people, and the international community, confidence in our ability to continue on the path to economic recovery.