As expected, the plan is to trim EUR 15 bln over 4 years, EUR 6 bln in 2011.
The VAT will rise to 22% in 2013 and 23% in 2014.
Two-thirds will come from spending cuts, one-third from tax hikes…
Ireland admits domestic demand will be hit by the plan.
Now remember, this is just a plan. The problem with these austerity plans is that tax revenues are always lower than expected, making the plans difficult to meet…see Greece for proof of that.
