Begg outlines unions' case to Rehn

Congress general secretary David Begg said he emphasised to EU Economics Commissioner Olli Rehn today that despite three tough Budgets, the situation was getting worse.

“Therefore it wasn’t very convincing that even more severe austerity measures would make any improvement,” he said.

“And we made the point that it’s not possible to get growth to take a hold in the economy if you go into a deflationary spiral.

“We explained that our analysis was that we needed to do this over a longer period.”

Mr Begg said the commissioner stressed it was not an exact science and it was a question of judgment.

“The one thing I do know with absolute deep conviction is that the approach being adopted now in this austerity package by the Government will not succeed, tragically, and will damage the economy and lead us into the type of longer depression such as the Japanese went through in the 1990s.

“I’d love to be wrong. I’d be the happiest man in Ireland if I’m wrong about that but that’s my analysis.”

Jack O’Connor, Congress president, said what was being proposed by the Government was “unadulterated madness”.