DUBLIN, Dec 15 (Reuters) - Ireland's budget for 2010 presented last week achieved an "internal devaluation" for the euro zone member country by proposing to cut public sector wages, the central bank governor said on Tuesday.
Patrick Honohan, a Governing Council member of the European Central Bank, declined to comment in a parliamentary hearing on the fiscal problems in Greece but he told deputies:
"What I would say in terms of our domestic (situation is that) ... part of the consequence of the strategy adopted in the budget is the achievement of what might be called an internal devaluation."
"This is positively good and necessary," Honohan said.
"For Ireland there has been a fall in prices, price stability in Europe has been achieved but in Ireland prices have fallen, there needs to be an adjustment ... in wages."
(Reporting by Andras Gergely)