Irish vote on difficult austerity measures to trim spending budget

The Irish vote for the new spending budget with difficult austerity steps is being viewed carefully. The Irish govt is set to receive financial aid, but is passing austerity steps to be able to repay it. Tax increases and spending cuts are part of the measures aimed at freeing up 6 billion euros. 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 resource – Irish vote on tough austerity measures to trim budget by Money Blog Newz.

Possible cut of vast amounts of Euros with vote in Ireland

The Irish 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 is not an official condition. If the spending budget cuts are enough to meet standards, Ireland stands to receive an aid package of about 85 billion euros. The goal of the austerity steps is to cut 6 billion euros from next year’s spending budget, part of an overall goal of cutting 15 billion euros over 2011 to 2013. It is bad for the government 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 decide if the third year of Austerity steps should go through, reports the Telegraph. The Emerald Isle will be where they’re introduced. As soon as the budget is passed, PM Cowen has to call for a new election. Of the 85 billion euros to be cut, 67.5 billion is from the European Union and the International Monetary Fund. The Irish government has withdrawn 17.5 billion euros from its own pension fund, similar to the Social Security trust fund for the United States. Most of the cuts can be slashing the pay of public sector workers. The Prime Minister will be taking a pay cut of about 14,000 euros per year.

At this time, austerity steps are un-liked

The government is getting lots of bad support from the individuals due to austerity measures. It does not help that the individuals were already angry at the Irish government because of the huge govt bailouts, prefer the United States did, within the country.

Citations

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