A round-up of public finance news stories from around Europe you might have missed this week (June 3–7).

IMF admits: we failed to realise the damage austerity would do to Greece

The International Monetary Fund has admitted it failed to realise the damage austerity would do to Greece as it catalogued mistakes made during the bailout of the stricken eurozone country (The Guardian, UK).

German central bank cuts growth forecasts for 2013 and 2014

Germany's central bank has cut its growth forecast for the country, but says the outlook for the economy has ‘become brighter’ (BBC).

Bulgaria finance minister plans spending cuts and warns on fiscal gap

Bulgaria's new finance minister has foreshadowed expenditure cuts, saying the 2013 fiscal deficit goal was at risk from delayed spending and overly optimistic revenue planning by the previous administration. A Socialist-led government took office last week pledging to boost incomes in the European Union's poorest country, but its room for manoeuvre on spending is constrained by the need to protect the lev currency's peg to the euro (Reuters).

Irish president warns EU to take social consequences of austerity into account

Irish president Michael D Higgins has warned the European Union to take the social consequences of its austerity policies into account (Irish Independent).

EU health systems ‘in urgent need of shock-proofing'

Health care systems in the European Union are in urgent need of 'shock-proofing' if they are to meet the challenges posed by severe pressure on budgets, a leading expert has warned (Pharma Times, UK).