Ireland Irish ministers are so concerned over protests that austerity plans to cut chauffeur driven cars and police outriders have been shelved to protect the government amid heightened post-EU bail-out security. Support for Fianna Fail, Ireland’s ruling party, has collapsed to 17 per cent the lowest level in 88-year history of the Irish Republic as pressure to hold a general election builds, threatening to plunge the country into more chaos. The bail-out and an EU driven austerity programme to be unveiled tomorrow have been described as “ignominious” and “shameful” by the Irish media as anger builds against a government that has presided over an economic and political disaster. Cabinet ministers have warned Brian Cowen, the Irish Prime Minister, that unless he resigns quickly the government faces “terrible aggression and anger amongst the people”. “I don't accept that I'm the bogeyman,” said Mr Cowen last night, after his request for an EU bail-out was met with anger and violent scuffles between protesters and police outside government buildings. Speaking earlier in on Sunday, the Irish leader, hit back at opposition claims he had betrayed Ireland by handing over sovereignty to the EU. “What I will not accept from any political opponent is the charge of treason,” he said. On Thursday, the government, with a slim majority, faces a by-election in Donegal after being forced by the Irish courts to hold a vote that Mr Cowen desperately tried to delay for 17 months. EU officials have warned that the bail-out will come with “drastic conditions” imposed on Ireland to dramatically increase taxation and to slash spending in order to cut public debt which amounts to 32 per cent of GDP this year. Willie O’Dea, a former goernemnt minister, said: “There’s no doubt in my mind that the news about the EU coming into Ireland was disastrously mismanaged.” The bail-out instalments for Ireland’s public finances will be £48 billion, paid over three years, with an extra fund between £21 billion and £29 billion to rescue Irish banks. The total rescue package, said one Brussels official, would be up to £77 billion with the final figure set after EU and IMF inspectors reported back to Brussels on real state of Ireland’s banking sector. During negotiations on Sunday night, the Irish were told by France that during the three year bail-out EU countries would pressure Ireland to abandon its low corporate tax rates as a condition for aid. “Several European states, including France, pointed out that Ireland has to be told to raise its revenues, the corporate tax leaves room for progress,” said a French official. Low corporation taxes are regarded by the Irish government as vital to drive the economic growth needed to lift the country out of a deep recession and reliance on high borrowing rates. Corporate tax in Ireland is 12.5 per cent, compared to 34 per cent in France, 30 per cent in Germany and 28 per cent in Britain and the policy is credited with attracting over 1,000 multinational companies such as Google and Pfizer to Ireland. The battle over EU and IMF imposed tax increases will fuel popular anger at Ireland’s loss of economic sovereignty and control over tough austerity measures. Middle class Irish families face the loss of tax credits and low paid workers, totalling 50 per cent of the labour force, will start to pay taxes for the first time. Ireland’s minimum wage is to be cut 13 per cent and all Irish households face a new £257 property tax from 2012. Welfare payments, including jobseekers allowance and child benefit, will be cut five per cent. As well as the steep tax increases, the EU has demanded extra public sector job cuts with a demand to cut the Irish civil service by 28,000 between 2011 and 2014. The job cuts are double the level the Irish has agreed with trade unions and are expected to fuel protests and strikes. A trade union demonstration, predicted to be the biggest in decades, will take place in Dublin on Saturday.Ireland bail-out: government prepares for backlash
The Irish government is taking precautions against an explosion of popular anger against a bail-out that means Ireland has handed over economic decision-making to the EU for the next three years.
Monday, 22 November 2010
Posts
