15 billion in cuts may be re-negotiated

Noreen1

EU Economic and Monetary Affairs Commissioner Olli Rehn has told Opposition finance spokespersons that the €15bn in budgetary adjustments required for Ireland over the next four years could be re-negotiated, depending on economic growth.

Following a meeting with Mr Rehn, Fine Gael's Finance Spokesman Michael Noonan said he was told that the EU would closely monitor growth rates, which could affect the overall figure.

Sinn Féin's leader in the Dáil, Caoimhghín Ó Caoláin has said he told Mr Rehn that excessive austerity measures will 'kill confidence' in the Irish economy, and urged Commissioner Rehn to reconsider.

Deputy Ó Caoláin said that he told the Commissioner that the Irish Budget deficit cannot be brought down to 3% by 2014.

Mr Ó Caoláin said that Commissioner Rehn gave an undertaking to study Sinn Féin's view further, and that the party is for a 'consensus for recovery', but not for cuts.

He said he told Mr Rehn that there is no evidence that the Government's approach is improving the economy. Rather it is imposing more hardship on the population, he said

Last night, following a meeting with Minister for Finance Brian Lenihan, Commissioner Rehn called for political consensus to back measures to cut the Budget deficit.

He said the crash after the Irish credit boom and property bubble hit the banking sector, the public finances and the Irish people very hard.

However, Mr Rehn said there were positives as well as negatives, including Ireland's well-educated, skilled and flexible workforce.

Following the meeting, Mr Lenihan said the European Commission was not here to dictate policy to the Irish Government.

Mr Rehn paid a courtesy call to Taoiseach Brian Cowen at Government Buildings at around 7.45am.

Commissioner Rehn has also been meeting the social partners, including an IBEC delegation and an ICTU delegation led by Congress President Jack O'Connor.

This afternoon, Mr Rehn will give an address to the Institute of European Affairs, which will include a questions and answers session.

Source:http://www.rte.ie/news/2010/1109/economy.html

tl:dr?

Olli Rehn has told Opposition finance spokespersons that the €15bn in budgetary adjustments required for Ireland over the next four years could be re-negotiated, depending on economic growth.

I said some time ago that 6 Billion in cuts (well, it was 7 Billion at the time) would cripple the Economy.
I'm no economist, but it doesn't take a genius to work out that reducing the disposable income of people who are already struggling financially will impact negatively on SMEs, leaving us completely exposed to the whims of multinationals.
There may be hope for us yet!
Opinions?

Noreen

123balltv

15 billion in cuts may be re-negotiated :mad: I dont believe it

I say that's a lie they just want us to go out and buy, buy, buy thinking that things are going to be grand

OutlawPete

Who let Edward Scissorhands into Leinster House.

iPlop

There will be no economic growth ,all the lads are doing in the dail is the equivalent to re-arranging the deck chairs on the titanic ,so we will be re negotiating.

5starpool

Why cut and paste into code tags? That's why we are in a recession, with people doing thnigs inefficiently.

marzic

I'd say poor Olly was seriously set up and would have said anything to get out of a sticky situation. I'd say Mick Noonan and Caoimhghín Ó Caoláin did a serious fcuking 'good cop(noonan) bad cop(caolain)' on him, and I'd say he was shown the old shinners communication manual, if you know what I mean;)

Noreen1

marzic wrote: »

I'd say poor Olly was seriously set up and would have said anything to get out of a sticky situation. I'd say Mick Noonan and Caoimhghín Ó Caoláin did a serious fcuking 'good cop(noonan) bad cop(caolain)' on him, and I'd say he was shown the old shinners communication manual, if you know what I mean;)

:D

Noreen

Noreen1

5starpool wrote: »

Why cut and paste into code tags? That's why we are in a recession, with people doing thnigs inefficiently.

Sheer force of habit. A forum I frequent insists on code tags for C/P.
Incidently, I wasn't aware that I was was obliged to a: Demonstrate efficiency - on my own time, or b: Impress you with my "efficiency" - or lack thereof.

seamus

Not really sure what your issue is here.

We need to cut €15bn over the next four years, going by current estimates.

If those estimates change (for better or worse), we will have to revise that €15bn figure. I thought that was obvious.

knipex

seamus wrote: »

Not really sure what your issue is here.

We need to cut €15bn over the next four years, going by current estimates.

If those estimates change (for better or worse), we will have to revise that €15bn figure. I thought that was obvious.

I agree

The target is to get the deficit within 3% of GDP.

If GDP goes up then less cuts are needed to achieve this target.

15 Billion is based on current growth estimates. If growth is lower then GDP will be lower in 2014 so cuts will be higher.

The 3% is fixed, the actual cuts depend on GDP growth.