Emergency Budget As Finances Crumble

The Minister for Finance has announced an emergency budget as Ireland’s economic problems threaten to thwart the EU for a second time this year.

The announcement, after it emerged Ireland was likely to breach the EU’s rules on borrowing and deficits, could mean serious sanctions being brought on the Irish state.

On Wednesday it was revealed the government’s tax income would be almost €6 billion short. The bringing forward of the budget by six weeks is sparking speculation that the Irish people are in for a tough winter as cuts and tax hikes are implemented to combat the impending economic crises.

Budget day will now be 14 October and the Minister for Finance Brian Lenihan (pictured) said he would use the early Budget to take steps to stabilise and restore balance to the public finances.

The Government appealed for support from the opposition in order to deal with the difficult situation, which has already drawn comparisons to the days of Ray MacSharry who was Minister for Finance in the late 1980s, and earned himself the nickname Mack the Knife for his ruthless public spending cuts.

However, Fine Gael Deputy Leader and Finance Spokesman Richard Bruton, has described the government's response to the situation as "belated" and said a series of "stealth taxes" would be imminent.

"The Government has finally woken up to the scale of the crisis facing the economy. This week's Exchequer figures and the unprecedented rise in the live register has prompted a belated response from Fianna Fáil. But the Government has squandered valuable time and sabotaged Ireland's ability to weather the economic downturn."

"Without a definite strategy, Fianna Fáil is likely to foist emergency tax measures on the public come October. Many of these will be stealth taxes which will hit the vulnerable members of society the hardest."

With the Lisbon Treaty problems still waiting in the wings, some commentators are viewing Ireland as the EU's problem child, and with Ireland's future within the union unsure, the government will be relying heavily on its international allies for support.

(DW/KMcA)