Irish vote on austerity steps for spending budget has a great deal riding on it

The Irish vote for the new spending budget with difficult austerity measures is being watched closely. The Republic of Ireland is receiving a bundle of bailout loans, comparable to Greece, and austerity steps have to be implemented. The Irish government is trying to free up six billion euros, within the form of spending cuts and tax increases. Ireland is another country already in debt from taking out to many personal loans. This will hopefully help pull them out of their financial pit. Post resource – Irish vote on tough austerity measures to trim budget by Money Blog Newz.

Huge amounts of Euros cut with Irish vote

Most are keeping a close eye on the Irish budget vote, states the NY Times. This is because the parliament of Ireland has decided to vote on more austerity measures. The Republic of Ireland would only be able to get a financial aid package that is needed with Irish austerity measures. Enough of a spending budget cut in Ireland would get them a package. About 85 billion Euros would be in that package. The goal of the austerity measures is to cut 6 billion euros from next year’s spending budget, part of an overall goal of cutting 15 billion euros over 2011 to 2013. Having to cut govt spending is not popular with the voting public, however doing nothing is often worse.

Accomplishment with austerity reductions in years past

The Telegraph reports that the Emerald Isle is where the third year of austerity measures could be introduced. As soon as the budget is passed, PM Brian Cowen has to call for a new election. About 67.5 billion will come from the European Union and the International Monetary Fund of the 85 billion euros that would be cut. The pension fund, like the Social Security fund within the United States, is where the Irish government already withdrew 17.5 billion euros from. A lot of the cuts impact public sector workers. This is the hardest part. A pay cut can be taken by the PM too. It could be a loss of about 14,000 euros a year.

Many do not like austerity measures

Austerity steps rarely make a government popular with the people, and the huge bailouts the Irish government made, similar to those in the United States and elsewhere, created a lot of public resentment toward the govt.

Info from

New York Times

nytimes.com/2010/12/08/world/europe/08ireland.html?pagewanted=1&partner=rss&emc=rss

The Telegraph

telegraph.co.uk/finance/financetopics/financialcrisis/8186351/Irelands-budget-vote-goes-to-the-wire.html