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EU may ask Government to cut spending next month

  • 20-05-2010 12:24AM
    #1
    Registered Users, Registered Users 2 Posts: 4,235 ✭✭✭


    IRELAND could be asked to make further cuts to government spending next month when the European Commission finalises its assessment of the country’s deficit and debt.Both Spain and Portugal reduced their spending very drastically last week when the EU said their spending was still too high and were not reducing their deficits fast enough. The countries will half their deficits to around 5% by next year.

    But Ireland appeared to be ignored by ministers, despite having the highest deficit in the eurozone and a forecast for about 10% next year.

    However, economics commissioner Olli Rehn indicated this could soon change as their attention turns to Ireland. "We are certainly looking to Ireland, and while Ireland took early and quite substantial measures to help bring down the spreads, there is a constant need to stay vigilant.

    "Ireland will be one of the countries in focus. We are expecting fiscal consolidation," he said following a meeting of EU finance ministers in Brussels yesterday.

    "Ireland will be closely followed because of its recent debt dynamics in our comprehensive assessment in June," he added.

    Mr Rehn was referring to the forecast and state of play report received from each member state earlier this year which the commission will report on next month.

    Ministers also discussed proposals to have the broad outlines of their budgets assessed by the commission and reviewed by ministers from other EU states before being adopted at home.

    Several countries expressed concern, but said they believed a way could be found that would not usurp national parliaments but would also allow the commission to issue guidance.

    Looks like we could get a slap on the wrists from europe very soon, while we took early steps to curb our deficit, the other peripheral countries are now passing us out in terms of fiscal correction, Lenihans promise that 2010 was the last "very difficult" budget looks very shaky indeed. Does anybody think this may be a stunt to allow the Irish government to make savage cuts, and then point the finger towards Brussels??

    http://www.examiner.ie/ireland/eu-may-ask-government-to-cut-spending-next-month-120198.html


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Comments

  • Closed Accounts Posts: 10,007 ✭✭✭✭thebman


    Given FF's record of blaming everything bad that happens on Brussels, I would say that they knew this was coming (as they didn't cut 20 billion last time so knew problem wasn't solved) and choose t osay everything was fine and no more cuts and will now try to play the damn that EU, we can't do anything about it card and hope the electorate fall for it and vote for them next time despite the obvious statement that this is all because of government policy over the past10 years.


  • Registered Users, Registered Users 2 Posts: 7,476 ✭✭✭ardmacha


    The government have already stated that they will cut the deficit for the next few years, probably the EU will be happy with this if they can show a definite plan.

    As Davy stockbrokers said
    As it stands, we have one element of the Budget package: the €1bn cut in capital spending from €6.5bn to €5.5bn. At least €1bn may come from further current spending reductions viz. the Croke Park Agreement. The other €1bn will come from the following menu: a property tax, water charges or broadening of the tax base (50% of workers pay no income tax whatsoever).


  • Registered Users, Registered Users 2 Posts: 3,553 ✭✭✭lmimmfn


    ardmacha wrote: »
    The government have already stated that they will cut the deficit for the next few years, probably the EU will be happy with this if they can show a definite plan.

    As Davy stockbrokers said
    As it stands, we have one element of the Budget package: the €1bn cut in capital spending from €6.5bn to €5.5bn. At least €1bn may come from further current spending reductions viz. the Croke Park Agreement. The other €1bn will come from the following menu: a property tax, water charges or broadening of the tax base (50% of workers pay no income tax whatsoever).
    dont forget property taxes

    im actually glad that someone else comes in and forces them to do something

    Ignoring idiots who comment "far right" because they don't even know what it means



  • Registered Users, Registered Users 2 Posts: 7,476 ✭✭✭ardmacha


    As Davy stockbrokers said
    As it stands, we have one element of the Budget package: the €1bn cut in capital spending from €6.5bn to €5.5bn. At least €1bn may come from further current spending reductions viz. the Croke Park Agreement. The other €1bn will come from the following menu: a property tax, water charges or broadening of the tax base (50% of workers pay no income tax whatsoever).

    dont forget property taxes

    They have already agreed the outline of the plan with the EU. The only fly in the oinment is all of the money squandered on banks.


  • Registered Users, Registered Users 2 Posts: 3,553 ✭✭✭lmimmfn


    ardmacha wrote: »
    They have already agreed the outline of the plan with the EU. The only fly in the oinment is all of the money squandered on banks.
    sorry i missed that for whatever reason :confused:

    Ignoring idiots who comment "far right" because they don't even know what it means



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  • Closed Accounts Posts: 2,819 ✭✭✭dan_d


    Actually I seem to remember Lenihan saying that the next couple of budgets would be difficult.
    Maybe something like this will make the unions wake up and smell the coffee...this is now going above and beyond their cosy little chats with FF.If the EU want to get involved they will, and I doubt there's much that FF or anybody else can do about it.It also looks like they are putting long term plans in place....FF blaming Brussels to win one election might work, but after that, it looks like it's just going to become part of the everyday workings of the Gov. I can't say I'm sorry to see it happen....with any luck the advantages will outweigh the disadvantages. If it means that we (and by we I mean banks, regulators and Gov) are forced to regulate properly and safeguard the economy as opposed to setting self-gain first and foremost, then I for one welcome the EU's involvement.


  • Registered Users, Registered Users 2 Posts: 2,419 ✭✭✭Count Dooku


    ardmacha wrote: »
    (50% of workers pay no income tax whatsoever).
    They pay enough taxes through VAT and low paid workers will be delighted to know that their taxes will go to pay salaries to overpaid managers in public services who have nothing to do


  • Registered Users, Registered Users 2 Posts: 2,458 ✭✭✭OMD


    They pay enough taxes through VAT and low paid workers will be delighted to know that their taxes will go to pay salaries to overpaid managers in public services who have nothing to do

    Quite clearly they do not pay enough taxes. You may not wish to pay more tax, who does but that is not really an argument. If every manager in public service was sacked we would still need more taxes.

    By the way, I have mentioned this before, but why do people think the problem is managers and not "ordinary" workers? If you talk to managers you get the opposite answer. Most likely both are to blame.


  • Registered Users, Registered Users 2 Posts: 7,476 ✭✭✭ardmacha


    but why do people think the problem is managers and not "ordinary" workers? If you talk to managers you get the opposite answer.

    Perhaps because managers have some influence of the behaviour of "ordinary" workers, but not the other way around.


  • Registered Users, Registered Users 2 Posts: 2,458 ✭✭✭OMD


    ardmacha wrote: »
    Perhaps because managers have some influence of the behaviour of "ordinary" workers, but not the other way around.

    Or more likely there are much less managers. So there are more ordinary workers to complain. Just because they are loudest does not mean they are correct.

    It is human nature. Everyone needs to work harder (except me and people like me), everyone should pay more tax (except me and people like me), Social welfare should be cut (unless I am on social welfare then it shouldn't be touched). Everyone is to blame for the country's situation (except me and people like me).


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  • Closed Accounts Posts: 219 ✭✭DidierMc


    The EU is the greatest threat to the pay and conditions of Irish workers in the 21st century.


  • Registered Users, Registered Users 2 Posts: 7,476 ✭✭✭ardmacha


    It is clear that processes in the public sector are often inefficient, these are not under the control of the foot soldiers operating them. Whatever the work rate of these individuals the overall organisation remains inefficient if its organisation is inefficient and that is the responsibility of managers. And while there may be less managers than "workers" there are an increasing number of them, with very mixed results.


  • Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    I get a feeling FF are trying to holding off the real pain until 2012, the date of the general election so whoever gets into office will have to dish out the real pain then. A cunning plan.


  • Registered Users, Registered Users 2 Posts: 26,458 ✭✭✭✭gandalf


    gurramok wrote: »
    I get a feeling FF are trying to holding off the real pain until 2012, the date of the general election so whoever gets into office will have to dish out the real pain then. A cunning plan.

    That's standard FF operating procedure. Let the opposition make the really painful decisions and they swan back into power in 5 years.

    Hopefully the EU's attention on the figures and them protecting the Euro won't allow the Government go down this path and force them to make the painful changes that are needed in the immediate future.


  • Registered Users, Registered Users 2 Posts: 23,283 ✭✭✭✭Scofflaw


    deadtiger wrote: »
    That's standard FF operating procedure. Let the opposition make the really painful decisions and they swan back into power in 5 years.

    Hopefully the EU's attention on the figures and them protecting the Euro won't allow the Government go down this path and force them to make the painful changes that are needed in the immediate future.

    Actually, Fianna Fáil's standard operating procedure is to make cuts during the early to mid-term when all governments are becoming unpopular anyway, soften up a bit as time goes by, then unveil a giveaway budget just before the election with the promise of yet more spending if they're re-elected, and get back into government every single time.

    Fianna Fáil are not just a group of TDs who happen to sit together in the Dáil, but an organisation whose purpose is running the country - they're not interested in spending time out of government, full stop, because they lose out on the quango jobs* and positions of power while they're out, and it takes time to get their supporters and place-men back in afterwards.

    cordially,
    Scofflaw


    *bear in mind that we have a quango sector controlling about €13bn annually, with c. 5000 board members, half of whom are direct Ministerial appointees


  • Registered Users, Registered Users 2 Posts: 1,305 ✭✭✭Bits_n_Bobs


    DidierMc wrote: »
    The EU is the greatest threat to the pay and conditions of Irish workers in the 21st century.

    Arithmetic is the greatest threat to the pay and conditions of Irish workers, followed by lenders to Ireland who can do arithmetic (AKA the evil 'markets'), followed by the EU, some of who also seem to be able to to arithmetic.


  • Registered Users, Registered Users 2 Posts: 785 ✭✭✭zootroid


    DidierMc wrote: »
    The EU is the greatest threat to the pay and conditions of Irish workers in the 21st century.

    I would have thought workers have enjoyed improved rights since Ireland joined the EU. The fact that we now have free movement of labour across the EU being the most obvious example


  • Registered Users, Registered Users 2 Posts: 2,419 ✭✭✭Count Dooku


    OMD wrote: »
    Quite clearly they do not pay enough taxes. You may not wish to pay more tax, who does but that is not really an argument.
    total taxable income in 2009 was between 68-76 Bn.
    Government expenditure was about 54 Bn.
    95% flat rate tax for everybody outside of public services should fix country:rolleyes:


  • Registered Users, Registered Users 2 Posts: 321 ✭✭dromdrom


    total taxable income in 2009 was between 68-76 Bn.
    Government expenditure was about 54 Bn.
    95% flat rate tax for everybody outside of public services should fix country:rolleyes:

    Don't be silly, are you suggesting that the Public sector wage bill should be frozen, you have made absolutely no allowance for productivity linked wage increases,


  • Closed Accounts Posts: 219 ✭✭DidierMc


    zootroid wrote: »
    I would have thought workers have enjoyed improved rights since Ireland joined the EU. The fact that we now have free movement of labour across the EU being the most obvious example

    Actually that's a terrible example. "Free Movement of Labour" is just a euphamism for big business to bring over cheap labour from the east to drive down wages and conditions.


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  • Closed Accounts Posts: 9,364 ✭✭✭ei.sdraob


    DidierMc wrote: »
    Actually that's a terrible example. "Free Movement of Labour" is just a euphamism for big business to bring over cheap labour from the east to drive down wages and conditions.

    if "Big Business" wanted cheap labour from East the would just move East

    like Dell...

    anyways carry on


  • Closed Accounts Posts: 219 ✭✭DidierMc


    ei.sdraob wrote: »
    if "Big Business" wanted cheap labour from East the would just move East

    like Dell...

    anyways carry on

    That's called the free movement of capital. It's more a medium to long term strategy of big business as it takes longer to move industry than labour.


  • Closed Accounts Posts: 9,364 ✭✭✭ei.sdraob


    DidierMc wrote: »
    That's called the free movement of capital. It's more a medium to long term strategy of big business as it takes longer to move industry than labour.

    Maybe we should build a big wall to prevent people and capital moving about

    it worked out great for East Germany and North Korea :rolleyes:


  • Closed Accounts Posts: 219 ✭✭DidierMc


    ei.sdraob wrote: »
    Maybe we should build a big wall to prevent people and capital moving about

    it worked out great for East Germany and North Korea :rolleyes:

    Yes because anyone who doesn't support free trade treaties is obviously a Stalinist:rolleyes:

    Talk about a lazy brainless argumnet! Vote Yes for jobs eh?


  • Registered Users, Registered Users 2 Posts: 321 ✭✭dromdrom


    DidierMc wrote: »
    Yes because anyone who doesn't support free trade treaties is obviously a Stalinist:rolleyes:

    Talk about a lazy brainless argumnet! Vote Yes for jobs eh?

    No they are most likely a protectionist, looking to protect there own little patch to the detriment of everyone else.


  • Closed Accounts Posts: 219 ✭✭DidierMc


    dromdrom wrote: »
    No they are most likely a protectionist, looking to protect there own little patch to the detriment of everyone else.

    So you think Ireland will benifit from "free trade" over the next decade?


  • Registered Users, Registered Users 2 Posts: 321 ✭✭dromdrom


    DidierMc wrote: »
    So you think Ireland will benifit from "free trade" over the next decade?

    Small open economy who exports most of our good and services, dunno really maybe DeVelara had it right with the whole closed shop thing, and that joining of the E.U (you know the one with that nasty free trade and open markets thing) jury is still out whether that has been of any benefit to us..


  • Closed Accounts Posts: 219 ✭✭DidierMc


    dromdrom wrote: »
    Small open economy who exports most of our good and services, dunno really maybe DeVelara had it right with the whole closed shop thing, and that joining of the E.U (you know the one with that nasty free trade and open markets thing) jury is still out whether that has been of any benefit to us..

    Ireland actually exports very little goods and services. We do however manufacture products for American corporations that they export. The profits don't stay in Ireland though. Most of this manufacturing will also be relocated to the east in the coming years.


  • Registered Users, Registered Users 2 Posts: 321 ✭✭dromdrom


    DidierMc wrote: »
    Ireland actually exports very little goods and services. We do however manufacture products for American corporations that they export. The profits don't stay in Ireland though. Most of this manufacturing will also be relocated to the east in the coming years.

    Really any chance you might produce some proof to substantiate your theory on the relocation of the American Investment from Ireland in the 'coming years' (although I did hear a rumour that Microsoft and Google were considering relocating to Lithuania). Also any outlines on your plans for how a nation of 4 million people can operate as a closed economy would also be brilliant. As someone who works for a successful multinational in Ireland I can assure you that end ownership does not make a jot of difference, if the goods are manufactured in Ireland , made by Irish people and shipped through Irish ports then you can count them as Irish exports.


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  • Closed Accounts Posts: 219 ✭✭DidierMc


    dromdrom wrote: »
    Really any chance you might produce some proof to substantiate your theory on the relocation of the American Investment from Ireland in the 'coming years' (although I did hear a rumour that Microsoft and Google were considering relocating to Lithuania). Also any outlines on your plans for how a nation of 4 million people can operate as a closed economy would also be brilliant. As someone who works for a successful multinational in Ireland I can assure you that end ownership does not make a jot of difference, if the goods are manufactured in Ireland , made by Irish people and shipped through Irish ports then you can count them as Irish exports.

    Actually whether the profits stay in the Irish economy or not is a very big issue. And you are deluding yourself if you think foreign capital based in Ireland will not try to move east to exploit the low wages there. I'm not calling for a closed economy but rather changing the nature of how we trade. We need to invest in indigenous companies instead of bending over to accomodate transnationals. We also need to take control of our resourses like fish and energy. The Irish territorial waters are massive and we should have a state company investing in this. Ireland could be a big exporter of gas and fish if we take control of these resources instead of constantly giving them away.


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