Emergency budget - Need for leadership

There is widespread recognition that the forthcoming budget will be harsh, because of the extent of the reversal of the economy. It is costing €55 billion annually to run the country, but the Revenue is only raising €34 billion.

It does not take an economist to realise that this cannot continue without bankrupting the country. There will therefore inevitably have to be serious spending cuts that will impact right across society, and there will also have to be increased taxes.

Taoiseach Brian Cowen was at pains to warn yesterday that next week’s budget will not be attempting to resolve the problem at one time. It will be a five-year process, but he stressed that the government is determined to be fair.