November 24th, 2010
10:03 AM ET

Ireland unveils austerity plan

The Irish government Wednesday unveiled its four-year plan to cut public spending and increase taxes - part of the painful measures the country must take to reduce its national debt.

The plan achieves savings through welfare cuts worth 10 billion euros ($13.4 billion) and higher taxes, expected to bring in 5 billion ($6.7 billion), according to the 138-page green booklet titled "National Recovery
Plan 2011-2014."

The minimum wage will be reduced by 1 euro ($1.34) to 7.65 ($10.25) an hour and public sector pay will be reduced by a total of 1.2 billion euros ($1.6 billion) over the four years.

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Filed under: Ireland
soundoff (5 Responses)
  1. David Alvarey

    The U.S. will inevitably have to take similar steps, although the incentives within our political system are completely short-term focused.

    At some point in the future, we will need to cut spending (not what Democrats want) and raise taxes (not what Republicans want). Not convinced yet that we have the leadership within either party to bring about the necessary changes to promote a healthy, SUSTAINABLE economy.

    November 24, 2010 at 9:55 am | Report abuse |
  2. Rocketship

    These are excellent recommendations that should be carried out in this country as well.
    We especially need to spur job growth by lowering the minimum wage by at least a dollar.

    November 24, 2010 at 9:56 am | Report abuse |
  3. phil

    We need to audit the Federal Reserve and force the Pentagon to pay back the money stolen from our social security administration, for starters. Thinking today's problems can be solved by simply tightening our belts or adjusting minimum wages or tax rates, etc. is just ludicrous.

    November 24, 2010 at 10:38 am | Report abuse |
    • David Alvarey

      What do you mean by "simply tightening our belts or adjusting ... tax rates."? As far as I can tell, those are our only two debt reducing levers.

      Money remaining = Money earned (tax revenue) – Money spent (federal spending)

      November 24, 2010 at 11:48 am | Report abuse |
  4. Johnny3Jobs

    Aus-what?

    November 24, 2010 at 10:54 am | Report abuse |
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