Thousands of Irish Protest Austerity Measures
Thousands of protesters parade through Central Dublin against the Republic＇s four-year austerity plan, Ireland, 27 Nov. 2010
wintry Dublin on Saturday to protest the Irish government＇s plan to cut social welfare programs and raise taxes in order to secure a $113 billion international bailout for debt-plagued Ireland.
The protesters paraded along the River Liffey, voicing their anger at Prime Minister Brian Cowen＇s four-year austerity plan announced earlier this week to cut $20 billion over the next four years from the Irish deficit. Ireland has the highest deficit in Europe since World War II.
The plan calls for a cut in the minimum wage and unemployment compensation, elimination of 25,000 government jobs, imposition of a new real estate property tax and making more Irish workers pay income taxes.
One protest leader, David Begg of the Congress of Trade Unions, said there was no economic, social or moral justification for the austerity measures.
But Ireland＇s counterparts in the European Union and International Monetary Fund officials have forced the hand of the Irish government, requiring adoption of the deficit-cutting measures before they would approve the bailout. European finance ministers are planning to meet Sunday in Brussels to finalize details of the bailout in advance of Monday＇s reopening of international financial markets.
Some protesters said the government＇s austerity measures were not necessary and that the bailout would benefit Irish banks, not the general Irish population. Some demonstrators carried placards saying, "Eire not for sale, not to the IMF." Another marcher carried a sign saying, "This tale has no happy ever after."
Mr. Cowen has acknowledged that the living standard of everyone in the country of 4.5 million people will be diminished by his austerity plan. But he says the country has no choice but to impose the social spending cuts and higher taxes with Ireland＇s deficit now at 32 percent of its overall economic production.
But even some of Ireland＇s counterparts in the European Union have complained that the Irish government does not plan to raise its low corporate tax rate of 12.5 percent. Ireland has used to low taxation rate to attract international companies to open operations in the island nation, but some overseas policy makers say the rate could be raised to offset some of the country＇s debt.
Mr. Cowen＇s political opponents have called for his resignation and a quick, new election in late January. But he has rebuffed them, saying that the Irish parliament needs to pass a 2011 budget as the first step in the new spending plan and then he would call for an election, perhaps in February or March.
Ireland is the second European nation, after Greece, to accept a bailout to solve a debt crisis. Some financial analysts fear that Portugal and Spain might have to accept bailouts as well although officials in both countries have rejected the idea.
Ireland＇s cost of a bailout will be higher than that for Greece earlier this year. The Irish government might be charged 6.7 percent on nine-year loans compared to the 5.2 percent rate the Greeks were charged.
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