Consolidation bid ‘shared unfairly’

DECEMBER will see the first of the severest budgets the State has ever experienced: €16.35 billion in savings and tax increases must be found over four years to get the State’s finances back in order.

NCB Stockbrokers economist Brian Devine said yesterday it is often forgotten the fiscal consolidation effort is a multi-year project. “The €4.75bn in savings that needs to be generated in 2010 is just the start. A further €4.6bn, €4bn and €3bn needs to be found in the years 2011, 2012 and 2013 respectively. This equates to approximately 7% of 2009 GDP.

“These savings will need to be found; year-to-date Ireland has borrowed €28.6bn or approximately 16% of 2009 GDP.”