The United States of America is currently struggling to create a balanced budget, as is Ireland. Ireland, however, is trying to come back from the verge of complete financial collapse, something of which Prime Minister Brian Cowen and Finance Minister Brian Lenihan are reminded each day. The Brians have drawn up austerity measures that may be what is needed to keep Ireland from drowning in a sea of debt. To help solve the Ireland debt problems, Cowen and Lenihan have come up with an array of Ireland budget modifications amounting to a massive $20 billion cut over the next four years, accounts the BBC.
Massive bailout might be Ireland's next move
Ireland is taking numerous methods to lower their spending budget, some of which contain; government job cuts, tax increases, minimum wage reductions, and increased property taxes. Additionally, the Irish government is negotiating with the International Monetary Fund and the European Union to bring in an expected $113 billion in addition to the Cowen and Lenihan budged package.
An expected 25,000 jobs cut in the public sector
Cowen and Lenihan's plan to get Ireland out of debt consist not only of cutting 24,750 public sector jobs, but additionally of the $3.7 billion welfare cut and increases taxes to make an additional $2.5 billion. The current minimum wage of $10.25 per hour could possibly be reduced by $1.34. The value added (consumption) tax would boost from 21 to 22 percent in 2013, then to 24 % in 2014. Furthermore, a property tax the Irish plans calls a "site value tax" would cost homeowners up to $267 more per year by 2014.
Ireland's austerity plan will not contain a rise in the 12.5 percent corporation tax so that it doesn't drive away any business.
Anger and Joy
You will find numerous who are already opposing the changes that haven't been implemented yet. Taoiseach Cowen explains that he hopes Ireland's spending budget cuts ill, "make sure (the people) have hope for the future." The people of Ireland want to change the federal government in hopes of fresh minds helping the nation, but the austerity plan can be voted on, on December 7 and Cowen won't let anything happen until after that date.
“Then the people can decide who they want to govern the country,” said Cowen.
Articles cited
BBC
bbc.co.uk/news/business-11829811
Back when 6 billion euros sounded good
youtube.com/watch?v=T_HVUBfW-Y
No comments:
Post a Comment