‘Government must examine tax hikes, social welfare cuts’

In the context of the €16.5bn savings that must be made over the next five years to get national finances back on track, Goodbody Stockbrokers says raising taxes and cutting social welfare are options the Government will have to examine.

The economy is facing an unemployment rate of up to 15% next year compared with 4.6% in 2007, while tax revenues have been slashed due to the collapse in the housing market.

Apart from raising taxes, cutting social welfare cannot be discounted, the brokers said.