Bloomberg reports today that the Irish government just can’t get enough Austerity.
Ireland’s government said it will cut spending by about 20 percent and raise taxes over the next four years as talks on a bailout of the country near conclusion.
Welfare cuts of 2.8 billion euros ($3.8 billion) and income tax increases of 1.9 billion euros are among the steps planned to narrow the budget deficit to 3 percent of gross domestic product by the end of 2014. The shortfall will be 12 percent of GDP this year, or 32 percent including a banking rescue.
Prime Minister Brian Cowen is racing to conclude talks with the European Union and the International Monetary Fund on an 85 billion-euro aid package as his governing coalition crumbles. EU Economic and Monetary Affairs Commissioner Olli Rehn said yesterday Ireland needs to pass next year’s budget “sooner rather than later” as concerns mount the fiscal crisis may spread to other euro nations such as Portugal.
We are not going to talk about this again, because we would simply be repeating ourselves. But you do have to wonder who exactly Brian Cowen represents ?
After three years of austerity, that has slowly been destroying what was left of the economy, he decides to nationalise the private banking system passing the debt onto the people of Ireland. Now he has decided to take on even more Austerity to punish them again. Why does he care more about foreign bond holders and the citizens of Portugal over his own citizens?
It doesn’t matter if the IMF or EU handover more cash, the economic architecture of Europe is broken. More austerity measures will simply mean that the new money will be used up more quickly, while the citizens of Ireland rapidly become poorer.
All we can say is good riddance Brian, hopely the next PM has the backbone to stand up for his/her people and tell the rest of the world to take a haircut, while developing a sustainable economic platform for Ireland’s future.
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