Troika: Cut benefits for long-term unemployed

Troika staff have blamed unemployed people for part of the spiralling costs of the health sector in a report that suggests the longer a person is without work the fewer benefits they should get.

It also warned that global growth was slowing and cut Ireland’s growth forecast for next year from 1.9% to 1.4% of GDP. It said the Government should not rule out any opportunity to cut costs and raise more money in the budget for next year.

The document, prepared by the European Commission troika staff, said that less than a quarter of the €543m health savings in the 2012 budget have been achieved, and that the Government is finding it difficult to reach the target. It blames pharmaceutical and private health insurance sectors for some of this. The near 15% unemployment rate is also partly responsible.