Government Rewrites History of €4 billion Adjustment Plan
26 Oct 2009
Congress President Jack O'Connor said today it was important to alert the public to the fact that the Government's fiscal plan, which was approved by the European Commission, did not envisage a €4 billion cut in public expenditure in 2010.
"It envisaged an adjustment in the deficit of €4 billion, which is an entirely different thing. This was to be achieved by a €1.75 billion increase in taxation, a €1.5 billion reduction in current expenditure and a €0.75 billion reduction in capital expenditure. We could not agree with this because, in the absence of parallel means to stimulate economic activity, it would serve only to exacerbate the downward spiral.
"However the Government has slickly shifted ground so that the €4 billion adjustment has now become a €4 billion cut in public expenditure. The effect is to place the whole burden on working people and on those who depend on public services, whilst the wealthy are insulated from making any additional contribution whatsoever."
ends