segunda-feira, 6 de dezembro de 2010

Irish Republic budget vote on knife-edge


The Republic of Ireland is set to unveil more details of its controversial budget cuts.
The ruling Fianna Fail party is due on Tuesday to present what will be the toughest budget in Dublin's history.
Finance Minister Brian Lenihan is planning an initial 6bn euros (£5bn) of cuts in welfare spending and job losses.
It is part of a deal to secure an 85bn-euro bail-out, but Fianna Fail's slim majority means the vote could be close.
Once the budget is cleared by parliament it will trigger the first tranche of bail-out funds from the European Union and International Monetary Fund.
The government previously announced cuts under a four-year National Recovery Plan unveiled two weeks ago.
Dublin is looking to save about 15bn euros over the period as it struggles to balance the books after its banking and property.
But on Tuesday prime minister Brian Cowen's government is to announce its spending programme for this financial year, having already warned that 2010/11 was likely to see the biggest cuts of the four-year plan.
The Irish Republic's generous welfare budget is a prime target for the axe.
Child benefit is being slashed, and social welfare spending - state pensions excluded - is being cut by 5%.
Thousands of public sector jobs will go. Civil service pay freezes will be imposed, and reform of the tax system will bring thousands of Irish people into the tax net. The minimum wage will be lowered. BBC News