A move in the right direction

RATHER like a terminal illness, no matter how rational the expectation, the final act is somewhat shocking. This budget was comprehensively leaked to the media over the past week.

Yet, the impact of welfare, pay and spending cuts still causes a shudder, however much anticipated. It was clever politics to prepare the ground of worst expectations in advance. No one can say they weren’t warned.

This budget marks a turning point in our willingness to confront the unsustainability of our public finances. The analysis and talking has been endless, while national insolvency looms. Reports from the EU Commission, OECD, ESRI, Commission on Taxation, Bord Snip and IMF have all reiterated the compelling logic of reducing public expenditure. At last, the talking has stopped and the action has started. The Finance Minister deserves support for his political determination and courage. Despite detractors within Government and rebelling vested interests, he has had the bottle to persevere. This is only because he has no choice. Our fiscal structural deficit cannot be resolved by international economic recovery.