This Irish paper gets it right in commenting on the government as it prepares to pass a renewed austerity budget:
Here's the plan:
- 24,750 public sector jobs cuts
- 2.8bn euros of savings in social welfare spending
- 1.9bn euros to be raised from income tax changes
- 1 euro cut in the minimum wage to 7.65 euros an hour
- VAT rise from 21% to 22% in 2013, and to 24% in 2014
- the corporation tax rate remains unchanged at 12.5%
- a new "site value" property tax to raise 200 euros from most homeowners by 2014.
The Irish government probably hoped this would all please bond traders, but it didn't - perhaps because they think it's insufficient or undeliverable.