Difficult austerity steps in Irish vote viewed closely

The Irish parliament is currently voting on a new budget. The Irish vote on the budget concerns some fairly tough austerity steps. The Republic of Ireland is receiving a bundle of bailout loans, similar to Greece, and austerity measures have to be implemented. The Irish govt is trying to free up six billion euros, within the form of spending reductions and tax increases. Ireland is another country already in debt from taking out to many personal loans. This will hopefully help pull them out of their financial pit. Article source – Irish vote on tough austerity measures to trim budget by Money Blog Newz.

Vast amounts of Euros cut with Irish vote

The Irish spending budget vote is being closely viewed, as the parliament of Ireland has taken on the grim task of voting on further austerity measures, based on the New York Times. Irish austerity measures have to be introduced for the Republic of Ireland to receive a direly needed financial aid package, though that isn’t really an official condition. Enough of a budget cut in Ireland would get them a package. About 85 billion Euros would be in that package. The goal of the austerity steps is to cut 6 billion euros from next year’s budget, part of an overall goal of cutting 15 billion euros over 2011 to 2013. It’s bad for the govt to do nothing although the voting public is upset that govt spending might be cut.

Austerity reductions worked this year

Irish vote could have to determine if the third year of Austerity steps should go through, accounts the Telegraph. The Emerald Isle will be where they are introduced. To top it all off, PM Cowen can have to call for a new election as soon as the spending budget is passed. About 67.5 billion will come from the European Union and the International Monetary Fund of the 85 billion euros that would be cut. The Irish govt has withdrawn 17.5 billion euros from its own pension fund, similar to the Social Security trust fund for the United States. A lot of the reductions affect public sector workers. This is the hardest part. A pay cut will be taken by the Prime Minister too. It can be a loss of about 14,000 euros a year.

Not many supporters of austerity actions

The govt is getting a lot of bad support from the individuals because of austerity measures. It doesn't help that the people were already upset at the Irish government because of the huge govt bailouts, like the U.S. did, in the country.

Data from

New York Times

nytimes.com/2010/12/08/world/europe/08ireland.html?pagewanted=1&partner=rss&emc=rss

The Telegraph

telegraph.co.uk/finance/financetopics/financialcrisis/8186351/Irelands-budget-vote-goes-to-the-wire.html