While the country has officially been bailed out by the IMF and the EU, the final size of the rescue package has yet to be negotiated; although the sum is thought to be between €80 and €90 billion. Along with seeking nearly a €100billion bail out our own Government has announced €10billion in cuts and €5billion in new taxes between now and 2014. These include;
- A Property Tax; could be introduced as early as next year in the form of a local service charge that could gradually be increased each year until 2014
- Water charges; although there will be no water charges in this Decembers budget a charge is expected to be applied within two years
- €1 cut to the minimum wage of €8.65 per hour
- 5% cut to child benefit and all other social welfare payments
- Levy on public sector pensioners to bring in up to €200m
- 20,000 more public sector job losses… to name but a few
On a positive note for those with mortgage debt the IMF has accepted the need to protect vulnerable homeowners from repossession but insisted any relief measures would be narrowly targeted.
Have Your Say
- Will the IMF give extra protection to homeowners?
- Although there maybe a few years of pain, will the IMF bailout provide a relatively quick return to economic growth?
- Will the 4 year budget plan and EU assistance provide the steps necessary to help, rather than hinder our ability to climb out of the mess we are in?