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  1. #1
    Senior Member Senior Member gaelic cowboy's Avatar
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    Default Irish Govt raises four-year austerity target to €15bn

    Govt raises four-year target to €15bn


    The Government has said it will need to bring in measures totalling €15bn over the next four years to meet a 2014 target for cutting the Budget deficit agreed with the EU.

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    The Government has said it will need to bring in measures totalling €15bn over the next four years to meet a 2014 target for cutting the Budget deficit agreed with the European Union.
    The figure of €15bn is double the one set out in last year's Budget.
    The Government must bring the deficit down to 3% of economic output by 2014 to come back in line with EU rules.
    In a statement, the Government said the main reasons for the significant increase were lower economic growth prospects at home and abroad and the higher cost of paying interest on our debt.
    The Government said the scale of the measures needed for next year and a breakdown for the remaining three years would be announced in the proposed four-year plan, expected to be published next month.
    The Government said it realised that the spending cuts and revenue raising measures needed would have an impact on people's living standards, but warned that it was 'neither credible nor realistic' to delay these measures.
    'To do so would further undermine confidence in our ability to meet our obligations and responsibilities and delay a return to sustainable growth and full employment in our economy,' the Government said.
    Finance Minister Brian Lenihan said a significant frontloading of the €15bn correction will be required in 2011, but precise figures will not be given until the middle of next month.
    He acknowledged the Government is concerned about the impact of the multi-billion euro correction, but said it has to happen to put the public finances back on a sustainable footing.
    Minister for Tourism and Sport Mary Hanafin has said no department would be ring-fenced from cuts in the upcoming Budget.
    She acknowledged a cut in child benefit was possible.
    However, she said it was difficult to tax and added: 'There was no way of identifying who the high-earning families who got child benefit were.'
    The Government's statement came after the the Cabinet held a day-long session to discuss the Budget and the four-year economic plan.
    Ministers met for over three hours at Farmleigh House in the Phoenix Park last night.
    The meetings took ahead of this week's Dáil debate on the economy.
    The Government has warned that in addition to increased taxes, there will be spending cuts in health, social welfare and education.
    Ministers arriving for this morning's session were keen to stress that fairness would be top of their agenda when framing cuts.
    However, Government Chief Whip John Curran admitted that the social welfare bill would have to be reduced to meet targets.
    Minister for Communications, Energy and Natural Resources Eamon Ryan said there is no denying the difficult choices that have to be made.
    Mr Ryan said the Government's job is to get a Budget that works and that gets Ireland out of the economic difficulties that it is in.
    Earlier on RTÉ's Morning Ireland, Minister for Community, Equality & Gaeltacht Affairs Pat Carey said that nothing can be ruled out.
    Mr Carey said no decision has been taken on reducing the Budget deficit to 10% by next year.
    He said the Government's focus was to meet the 2014 target of 3% and that every area of expenditure would have to be examined.
    Last night's meeting at Farmleigh was delayed to allow Minister Lenihan return from a meeting with EU Commissioner Ollie Rehn.
    The subsequent discussions focussed on preparations for the Budget according to a spokesman, but Europe and the markets may be more interested in the four-year plan now due in three weeks' time.
    That will chart the pattern of painful cuts across that period and will be the focus of this week's debate in the Dáil.
    Final decisions on where the axe will fall in December's Budget will not be taken until tax receipts for this month are to hand.
    Opposition briefings
    Briefings of the Opposition finance spokespersons by officials in the Department of Finance resumed this afternoon.
    Sinn Féin's Arthur Morgan had an hour-long meeting this morning, while Labour's Joan Burton arrived at the department at lunchtime. Fine Gael's Michael Noonan was briefed by Finance Minister Brian Lenihan this afternoon.
    This is the third time Opposition spokespeople have met with Department of Finance officials.
    Elsewhere, Davy Stockbrokers has lowered its forecasts for the economy this year and next year, warning that Budget measures are likely to affect consumer spending.
    It expects gross domestic product to rise by just 0.3% this year, compared with its previous forecast of 0.8% growth.
    Davy also expects gross national product, which excludes profits from multinational companies based in Ireland, to fall by 1.5%, compared with its previous forecast of a 1.2% fall


    This is gonna hurt the government has decided to frontload the pain which I believe is a good idea but it still wont be nice. The talk is of a 7billion cut in the budget across all areas and various tax rises and stealth charges then the budgets after will be in the 2 to 3 billion mark for cutting.

    I suggest implementing in full the McCarthy Report otherwise known as Bord Snip Nua (translation New Snip Board) our public service is far too bloated for such a small country.
    Last edited by gaelic cowboy; 10-26-2010 at 18:24.
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  2. #2
    TexMec Senior Member Louis VI the Fat's Avatar
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    Default Re: Irish Govt raises four-year austerity target to €15bn

    The Government must bring the deficit down to 3% of economic output by 2014 to come back in line with EU rules.
    That's so sweet those small countries are actually playing by the rules it is just adorable.
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  3. #3
    Senior Member Senior Member gaelic cowboy's Avatar
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    Default Re: Irish Govt raises four-year austerity target to €15bn

    Quote Originally Posted by Louis VI the Fat View Post
    That's so sweet those small countries are actually playing by the rules it is just adorable.
    Paddy spends it when he has it and when he doesn't he hits for Hollyhead that is the way we are and always will be Louis.

    Last edited by gaelic cowboy; 10-26-2010 at 18:30.
    They slew him with poison afaid to meet him with the steel
    a gallant son of eireann was Owen Roe o'Neill.

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    Senior Member Senior Member gaelic cowboy's Avatar
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    Default Re: Irish Govt raises four-year austerity target to €15bn

    On a more serious note there Louis we are too small and far to open an economy to use a stimulus to get us out of the debt and cos were locked in the Euro we cant devalue our way out.

    Ireland has an economy heavily dependent on US companies and the UK markets and lastly the EU's open borders therefore we stand on the fence hoping never to fall off and as long as we do we can earn good money being there.
    They slew him with poison afaid to meet him with the steel
    a gallant son of eireann was Owen Roe o'Neill.

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  5. #5

    Default Re: Irish Govt raises four-year austerity target to €15bn

    Quote Originally Posted by Louis VI the Fat View Post
    That's so sweet those small countries are actually playing by the rules it is just adorable.
    Yeah, oh by the way could you send some good food up here while we do it? Because without other countries starting to see the sense of keeping public spending in check, there might not be CAP money for a glorious sun filled summer reading philosophy and poetry to paraphrase you. Not even if the yields might look better.
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  6. #6
    Senior Member Senior Member gaelic cowboy's Avatar
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    Default Re: Irish Govt raises four-year austerity target to €15bn

    Budget to prioritise spending cuts - Cowen

    Taoiseach Brian Cowen has indicated that spending cuts will take precedence over tax increases in December's Budget.

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    The Taoiseach has indicated that spending cuts will take precedence over tax increases in December's Budget.
    Brian Cowen was speaking in a special economic debate in the Dáil, which has heard strong criticism of his Government from Opposition leaders.
    Mr Cowen said the country is entering a crucial period that would shape Ireland's future and if it made the wrong decisions the repercussions would be critical.
    He said the gap between what Ireland earns and what it spends was just too wide.
    Not every sector of the economy could be protected in the Budget, he warned.
    Fine Gael leader Enda Kenny claimed the Taoiseach had not made a single concrete proposal in his speech, insisting the Government now had neither credibility nor a mandate.
    Mr Kenny said Fine Gael would not be brow-beaten into accepting all the terms of the proposed four-year plan.
    Labour leader Eamon Gilmore said there should be a 50/50 relationship between spending cuts and tax increases, but criticised the approach of the body known as 'An Bord Snip Nua'.
    Mr Gilmore said that Labour accepted the social welfare budget would have to be curtailed, but he also said there should be voluntary redundancies in the public service.
    Earlier, the Taoiseach confirmed that the decision to seek €15bn in adjustments over the next four years was taken by the Government.
    Mr Cowen was responding to Mr Kenny who asked if the target had been imposed by the European Commission.
    'Cuts will hit living standards'
    The Minister for Finance has admitted that the €15bn adjustment over the next four years will have an impact on the living standards of citizens.
    Following yesterday's Cabinet meeting, Mr Lenihan said the measures are needed to put the public finances back on a sustainable footing.
    The EU Monetary Affairs Commissioner Olli Rehn will be in Dublin early next month to discuss the four-year framework plan with the Opposition and the social partners.
    It is thought likely the four-year-plan will be formally published shortly after Commissioner Rehn's visit.
    Speaking on RTÉ's Morning Ireland, Minister for Tourism, Sport & Culture Mary Hanafin said it would be premature to talk about changes to public service pensions but that all departments were being examined.
    On the same programme, Fine Gael Finance Spokesperson Michael Noonan said his party did not accept the €15bn figure.
    Reacting to yesterday's announcement, employers' group IBEC said the target is challenging but necessary to guarantee the country's credit worthiness.
    The Congress of Trade Unions said the announcement confirmed its belief that the 2014 target needs to be extended.
    Exports increase
    Despite the recession, figures from the Irish Exporters' Association have shown a strong increase in the value of goods and services exported from Ireland in the third quarter of this year.
    The Association said total exports of €40.4bn were up 9.3% on the same period last year.
    The better-than-expected figures during the period were helped by a weaker euro and increased Irish competitiveness


    There is some good news at the end of the article

    Despite the recession, figures from the Irish Exporters' Association have shown a strong increase in the value of goods and services exported from Ireland in the third quarter of this year.
    The Association said total exports of €40.4bn were up 9.3% on the same period last year.
    The better-than-expected figures during the period were helped by a weaker euro and increased Irish competitiveness.
    Looks like we may just pay off after all
    Last edited by gaelic cowboy; 10-27-2010 at 15:20.
    They slew him with poison afaid to meet him with the steel
    a gallant son of eireann was Owen Roe o'Neill.

    Internet is a bad place for info Gaelic Cowboy

  7. #7
    Senior Member Senior Member gaelic cowboy's Avatar
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    Default Re: Irish Govt raises four-year austerity target to €15bn

    Budget represents 'one step back' - Lenihan

    The Finance Minister has said the upcoming Budget and economic plan represents one step back for the country after it has taken many steps forward.

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    The Minister for Finance has said the upcoming Budget and economic plan represents one step back for the country after it has taken many steps forward.
    Brian Lenihan also said the Irish people will still hold on to most of the economic gains they won in the last decade.
    Speaking during the economic debate in the Dáil, the minister said following the unprecedented shock to the economy, the country's finances have been stabilised.
    On reducing the deficit by 2014, Minister Lenihan said the problems will worsen if action is delayed.
    He also said the measure in achieving that target will be painful, after earlier admitting that the €15bn adjustment over the next four years will have an impact on the living standards of citizens.
    Responding, Fine Gael's Finance Spokesman said things are bad and that people are down and depressed. He said there is no growth, no hope and no economic plan.
    Deputy Michael Noonan said the 3% deficit target can be achieved by a €9bn adjustment. He said Fine Gael was not buying into the €15bn figure announced by the Government.
    He also said the Finance Minister's and the Government's biggest problem is that no one believes him anymore and that credibility has been lost.
    He said the dynamic of change must now take place.


    In the interests of informing our masters of the universe in Berlin I will post the odd article here on the budgets and cuts etc etc.
    Last edited by gaelic cowboy; 10-27-2010 at 15:40.
    They slew him with poison afaid to meet him with the steel
    a gallant son of eireann was Owen Roe o'Neill.

    Internet is a bad place for info Gaelic Cowboy

  8. #8
    Enlightened Despot Member Vladimir's Avatar
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    Default Re: Irish Govt raises four-year austerity target to €15bn

    By "take precedence" does he mean you'll have both spending cuts and tax increases?


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