Dáil to debate €2bn public spending cuts

The Dáil is due to debate the Government's latest package of public spending cutbacks later today.

Yesterday, Taoiseach Brian Cowen announced a number of measures to slash €2bn in spending this year.

The majority of the cuts will be achieved by imposing a controversial pension levy of between 3% and 10% on all public servants.

The Government is pressing ahead with the cuts unilaterally after failing to secure the support of trade unions during talks that dragged on into the early hours of yesterday morning.

Speaking in the Dáil yesterday, Fine Gael leader Enda Kenny described the cuts as a sticking plaster designed to cover a gaping wound.

Labour leader Eamon Gilmore, meanwhile, said the Taoiseach's plan had only added to the uncertainty and confusion in the Irish economy.

Elsewhere, business leaders have welcomed the cuts, while trade unions have questioned their fairness.