OECD: Hike tax and cut spending

SUBSTANTIAL spending cuts and increases in taxation are required in the coming years in Ireland, according to the Organisation for Economic Co-operation and Development (OECD).

The international advisory agency said the Irish economy will still shrink by nearly 10% this year, adding that the recession will slow here next year as gross domestic product (GDP) contracts by 1.5%.

It expects unemployment to rise to a significant 14.8% next year.