The Irish Republic’s government said on November 4 that it wants to slash 6 billion euros from its 2011 deficit, MorningStarOnline.co.uk said the following day. The cuts were announced despite the government admitting it would lead to lower economic growth.
Ireland’s deficit is set to reach an astronomical 32%, MorningStarOnline.co.uk said, mainly because the government’s bailout of the banks with public funds cost 31 billion euros.
The country has already endured two years of recession driven by the bail-out costs and a doubling of unemployment to 13.6%.
But MorningStarOnline.co.uk said Taoiseach Brian Cowen insisted Ireland’s top priority was to reassure the bond markets that Ireland was a safe place to lend money to.