Ireland’s austerity budget gets through first round

08/12/10 02:13 CET

world news

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Ireland’s Finance Minister Brian Lenihan has guided his tough austerity budget through its first parliamentary vote by a narrow 82 votes to 77.

But three more debates are due to follow in the coming days before the entire package can be said to have been approved.

Politicians on all sides of the Dail were agreed the first round of deep cuts were as bad as they feared.

In total, Ireland has to find a massive 15 billion euro reduction in public spending over four years to clinch all of the 85 billion euro bailout fund promised by the EU and the IMF.

Along with tax hikes, the minimum wage, public sector jobs, salaries and pensions will all be chopped. The government needs to rein in a deficit set to top more than 30 per cent of GDP this year.

But Ireland’s voters are angry and, once the budget is approved, Prime Minister Brian Cowen has promised to call an election which he is widely expected to lose.

More about: Eurozone in crisis, Ireland

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