Irish Leader Will Dissolve Government

Written by FrumForum News on Tuesday November 23, 2010

The New York Times reports:

DUBLIN (Reuters) - Ireland begins two nervous weeks of political maneuvering on Tuesday as the government dares the opposition to block an austerity budget on which a multi-billion euro EU/IMF bailout is riding.

Irish Prime Minister Brian Cowen defied mounting pressure to quit on Monday, saying he would stay in office until parliament passed the budget, then call an early election.

Public anger at his handling of Ireland's economic and banking crisis has only grown since he announced the bailout, and his chances of passing the budget fell dramatically when two independent members of parliament said they were likely to withhold their support.

But Cowen said the national interest required that he press on to unveil a promised four-year austerity package on Wednesday, and a 2011 budget on December 7.

The government is expected to announce that it will cut the minimum wage, slash social welfare spending, reduce the number of public employees and add a new property tax and higher income taxes in a package intended to slash 6 billion euros off next year's budget, and 15 billion off the annual budget by 2014.

Trade unions have warned that the austerity plan could provoke civil unrest: a student demonstration over planned fee increases turned violent this month, and unions have organized a march to protest at the planned measures on November 27 in Dublin.

Category: The Feed