The IMF has stated that public opposition to water charges is becoming “less heated”.
It said that the reduction in charges has softened the public protests against the new regime.
The comments were made in a new report on Ireland’s progress since it left the bailout in 2013.
“Polls in early 2015 show a rise in support for the coalition parties and the water charges issue appears to becoming less heated after the November 2014 steps to lower fees and set a cap to reduce uncertainty about future charges,” the report states.
The Fund also said that the Government could need new austerity measures worth over half a billion euro if Irish Water fails the market corporation test.
The report is broadly positive of Ireland’s performance, and supports the new restrictions on mortgage lending.
It said that more needs to be done to help those who are still in mortgage arrears, however.