Ireland Plans Tough Austerity


As expected, Ireland has unveiled tough austerity measures for next four years. These measures are part of convincing EU and IMF that it is committed to deliver tough measures.

Ireland’s four year plan aims to save 15 billion euros ($20 billion). BBC and Reuters have said the joint bailout package from EU and IMF is expected to be worth 85 billion Euros ($114 billion).

The austerity plan also aim to cut 24,750 public sector jobs, to save 2.8 billion euros through welfare spending cuts, to raise additional 1.9 billion euros by increasing income tax. Minimum wage for workers will be reduced and new property tax will be launched. Value Added Tax will be raised to 23% in 2013 from 21% and to 24% in 2014.

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