–E6bn Of Fiscal Adjustment To Be Made In 2011
–12.5% Corp Tax Rate Maintained
–E7bn Cuts In Current Spending By 2014; 25,000 Public Job Cuts
–E2.8bn Cuts In Welfare Spending By 2014
–Cuts In Public Sector Pay and Reform Public Sector Pension System
LONDON (MNI) – Ireland is to frontload its planned E15bn fiscal
tightening for 2011-14 by aiming to do 40% of the required adjustment
in 2011 alone.
Two thirds of the adjustment are to come from cuts in public
spending and the rest from the revenue side.
“The Government has decided that 40% or E6 billion of the E15
billion adjustment will be made in 2011. This commitment to the early
delivery of the Plan will engender confidence at home and abroad that we
can restore order to our public finances. The adjustment will be made up
of E10 billion in spending reductions and E5 billion in tax and revenue
raising measures. These are demanding but realistic targets. With a
concerted national effort, they can be achieved,” the plan stated.
Contrary to some speculation, as well as pressure from some parts
of the euro zone, the plan reaffirms “the Government’s unambiguous
position on the maintenance of the 12.5% rate of corporation tax”.
“This is a cornerstone of our pro-enterprise, outward-looking
industrial policy and has remained consistent over successive
administrations”, the plan stated.
Key elements of the draconian austerity plan include:
–Cutting current expenditure by E7 billion by 2014, bringing
spending back to 2007 levels;
–Cuts in social welfare spending of E2.8 billion by
2014
–Cutting public service staff numbers by 24,750 over 2008
levels, back to levels last seen in 2005;
–Reduce the public sector pay bill by about E1.2 billion between
2010 and 2014;
–Introduce a reformed pension scheme for new entrants to the
public service and 10% pay cuts for these
–Cutting the Minimum Wage By 1 Euro To E7.65 Per Hour
–London newsroom: 00 44 20 7862 7492; ukeditorial@marketnews.com
[TOPICS: MMXBO$,MNXAU$,MFX$$$,M$F$$$,MGX$$$,MX$$$$,M$X$$$,MT$$$$]
