[lbo-talk] Celtic Tiger dead: official

[Wendy Lyon]

The Irish Government has just announced details of its 2009 budget.
This would normally be done in early December but was brought forward
two months to deal with an unprecedented collapse in revenues. Two
years ago there was a budget surplus of €6 billion, now we're looking
at a €15 billion deficit.

Among the measures:
* 1% "levy" on all incomes (including those below the normal income
tax threshold) up to €100,000 per year. 2% above that.
* Health care for over-70s now to be means tested (previously all
over-70s got free medical care, the only group of people for whom
"universal" health care existed)
* VAT to increase from 21% to 21.5%
* Primary school class sizes to be increased. Fees for third-level
education likely to be reintroduced.
* More of the usual sin taxes

Unemployment is expected to rise to 7.3% next year, the highest rate
in ten years