Cheese. (popehippo) wrote in ontd_political,

Irish unveil tough four-year recovery plan

The Irish government has unveiled a range of tough austerity measures designed to help solve the country's debt crisis.

Among the spending cuts and tax rises are a reduction in the minimum wage, a new property tax and thousands of public sector job cuts.

The four-year plan is designed to save the state 15bn euros ($20bn; £13bn).

The government is also negotiating a bail-out package with the EU and IMF, expected to be worth about 85bn euros.

The recovery plan outlines plans to cut 24,750 public sector jobs, achieve savings in social welfare spending of 2.8bn euros, and raise an additional 1.9bn euros from income tax.

The government will also reduce the minimum wage by 1 euro, to 7.65 euros an hour, and raise VAT from 21% to 22% in 2013, with a further increase to 24% in 2014.

In total, the spending cuts will amount to 10bn euros while tax rises will bring in a further 5bn euros.

The government has already implemented 15bn euros of cuts since the onset of the global financial crisis.

Taoiseach Brian Cowen said he hoped the plan would "bring certainty to our people to make sure they have hope for the future. We can and will pull through as we have in the past".

He added that it was also "about growing the economy and identifying those sectors of the economy that are proving to be successful".

Source, includes video.
Tags: economics, ireland
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