Labour: €6bn cuts package ‘dangerous’

THE danger of a double-dip recession will rise sharply if the Government pushes through its €6bn cuts package in next week’s budget, Labour last night warned.

Launching the party’s own proposals to right the economy, leader Eamon Gilmore warned it would be “dangerous” to impose spending decreases and tax hikes greater than €4.5bn.

Mr Gilmore put the party’s €500m job creation initiative at the centre of its “back to work” agenda which will also see all political and public sector salaries capped at €190,000 and a top income tax rate of 48% brought in, in order to raise revenue.