The Irish government has before Parliament in Dublin introduced the austerity budget for 2011 that will reduce the deficit in the state treasury to six billion euros. Finance Minister Brian Lenihan said on Tuesday before the deputies, the guidelines were “challenging”, but that is proof of the “seriousness” of the Irish effort. Two-thirds of the budget reductions are to be achieved through spending cuts, one third about raising taxes.
With the budget for the coming year to nearly 40 percent of the reductions in the amount of 15 billion euros will be made, provided that in the next four years and a condition for the billions of aid from EU and the International Monetary Fund (IMF). The government is deficit from the current 32 per cent of gross domestic product (GDP) in 2011 nine, percent. By 2015, the deficit would again be pushed below the allowed by the EU ceiling of three percent. There is less money for the unemployed, parents, civil servants – and, allegedly, for the Prime Minister. Tax Increase will bring in additional to first 5 billion euros.
No increase of the rescue
The EU decided in Brussels, meanwhile, the emergency package of € 85 billion for the stricken country. “This is an important step,” said Federal Finance Minister Wolfgang Schäuble (CDU). Finance ministers from the Union waived regardless of the €-crisis to other steps examined as the increase of the rescue of jiggling Member States. Portugal remains the problem child that refuses further European aid. The banks have to put yourself back in February, new and harder exercise tests.
Ireland is the first Euro-land that slips under the rescue of the Europeans with a volume of 750 billion €. The deficit this year will be 32 percent – a European record. The country suffers from a serious banking crisis. Dublin is now 2015 – and another year – time to bring its deficit below the level of three percent of economic output.
“All the finance ministers are behind the euro”
Asked about the plans of Portugal Schäuble said: “We have great respect for the willingness to take responsibility of any government in the euro zone we have full confidence that Member States do their…” The Dutchman Jan Kees de Jager said: “We are ready to defend the euro if necessary. All finance ministers behind the euro. I therefore see no reason to see any danger. “De Jager and other Ministers called on Member States to focus on reforms and austerity measures The Necessary and to Strengthen the stability € pact.
The row over the reform of the stability pact € is making the EU. Rehn said at the “appropriation” of pension reforms, Which calls, inter alia, of Poland, a compromise was in sight. If there were these reforms, could under certain circumstances, be first to dispense with a deficit criminal proceedings against a country – even if the deficit was higher than three percent.
New bank stress tests planned
How safe are the big European banks, they are to make between February 2011 and again. Rehn announced new stress tests. There will be a future test of the liquidity banks. “We must choose the greatest possible transparency,” the Commissioner replied to questions, the results to be published. In the summer, were in THE STRICT stress scenario of European Banking Supervisors CEBS only seven of 91 European banks and banking groups fell, including the German HRE. Been heavily damaged The Anglo Irish Bank in Ireland was left out, according to Rehn. The EU finance ministers agreed in Brussels after years of debate in addition to assistance in tax matters improved. They should exchange more information between the EU countries in order to plug loopholes.