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Dublin: 11 °C Saturday 15 June, 2019

#Budget Deficit

From TheJournal.ie Ireland's 'fragile' budget faces years back in the red with a no-deal Brexit Red Lines

Ireland's 'fragile' budget faces years back in the red with a no-deal Brexit

The Parliamentary Budget Office issued a stark warning on the impact of a hard Brexit on the public purse.

From TheJournal.ie This man should have an extra €2 billion to play with come budget time Hello Money

This man should have an extra €2 billion to play with come budget time

The taxes are rollin’ in for Michael Noonan.

From TheJournal.ie Brussels approves latest €1bn loan under Ireland's bailout programme Bailout

Brussels approves latest €1bn loan under Ireland's bailout programme

The European Commission confirms water charges will be in quicker than expected – and calls for tweaks to benefits for the jobless.

From TheJournal.ie Dutch caretaker PM urges 'responsibility' over economic problems Netherlands

Dutch caretaker PM urges 'responsibility' over economic problems

Despite the fall of the country’s government over budget disagreements yesterday, the Netherlands raised €2 billion at a bond auction today.

From TheJournal.ie Column: Ireland faces a decade of austerity – so let’s not waste it Opinion

Column: Ireland faces a decade of austerity – so let’s not waste it

Economists tell us we’ve got ten years of financial difficulty – so do we want to buckle under, or use this opportunity to reshape Ireland? Aaron McKenna writes.

From TheJournal.ie Ireland faces austerity 'for as long as anyone can look forward' Economy

Ireland faces austerity 'for as long as anyone can look forward'

Economist Joe Durkan has warned austerity will not end with the bailout deal in 2015 – and rejected criticisms of the ESRI.

From TheJournal.ie Ireland's finances €3.6bn better than thought - due to accounting error Accounting

Ireland's finances €3.6bn better than thought - due to accounting error

A figure of €3.6 billion passed between State agencies was accidentally counted twice – creating an accounting error equal to 2.3 per cent of GDP.

Facebook joke about EU commissioner’s flag gaffe ‘not an official remark’ Flagpalm This post contains images

Facebook joke about EU commissioner’s flag gaffe ‘not an official remark’

A comment on the EC’s official Facebook page, saying Gunther Oettinger has “form in the foot in mouth department”, was a joke.

From TheJournal.ie German commissioner insists he doesn’t support ‘half-mast’ idea Flagged

German commissioner insists he doesn’t support ‘half-mast’ idea

Gunther Oettinger says lowering the flags of “default sinners” is an idea already out there – and that he didn’t say he supports it.

From TheJournal.ie Germany’s EU commissioner wants Irish flag flown at half-mast Deficit Sinners

Germany’s EU commissioner wants Irish flag flown at half-mast

Günther Oettinger wants the flags of ‘deficit sinner’ countries – including Ireland – to be at half-mast at all EU institutions.

From TheJournal.ie Spain lawmakers agree to deficit amendment talks Spain

Spain lawmakers agree to deficit amendment talks

Spain’s Parliament is to discuss introducing a “debt brake” – which would stipulate that the country’s deficit could not exceed a certain percentage of GDP.

From TheJournal.ie Budget deficit for first half of the year stands at €10.8bn Budget Deficit

Budget deficit for first half of the year stands at €10.8bn

While the deficit is in line with the Department of Finance’s estimates, the tax-take for the first six months of 2011 is below the government’s forecast.

From TheJournal.ie While Greece riots, Italy passes €47bn austerity plan Austerity

While Greece riots, Italy passes €47bn austerity plan

Europe’s financial worries deepen as Italy plans for more austerity measures to balance its budget.

From TheJournal.ie ESRI calls for more cuts and higher taxes to wipe deficit ERSI

ESRI calls for more cuts and higher taxes to wipe deficit

The economic think tank says Ireland should aim to cut it’s budget deficit within three years in order to return to the markets – and that this should be done through pay cuts, spending cuts and higher taxes.

From TheJournal.ie Pothole politics not on the agenda after all... Pothole Ireland

Pothole politics not on the agenda after all...

There’s a deficit of over €4bn in local government coffers which are going to hit basic services if not addressed by next government.

DÁIL ÉIREANN HAS passed all stages of the Social Welfare Bill by a margin of 80 votes to 76 this evening. The bill is one of the two main objectives of the Budget 2011.

From TheJournal.ie Ireland's budget deficit not as bad as suspected Exchequer Figures

Ireland's budget deficit not as bad as suspected

Exchequer figures show income tax take is down – but corporation tax receipts were higher than expected in November.

From TheJournal.ie What they're saying about Olli Rehn's visit Reax

What they're saying about Olli Rehn's visit

A round-up of international coverage on EU Commissioner Rehn’s visit to Ireland.

From TheJournal.ie Rehn repeats mantra that Ireland will lose low tax Olli Rehn

Rehn repeats mantra that Ireland will lose low tax

The European Commissioner repeats his assertion that Ireland will simply have to raise tax rates in order to survive.

From TheJournal.ie EU economics chief arrives for two-day budget talks Olli Rehn

EU economics chief arrives for two-day budget talks

Olli Rehn will meet with the Minister for Finance today to discuss the upcoming budget.

From TheJournal.ie Deficit must be tackled quickly, Honohan warns Budget Deficit

Deficit must be tackled quickly, Honohan warns

“Explicit reprogramming of the budgetary profile for the coming years is clearly necessary soon if debt dynamics are to be convincingly convergent.” No, we don’t know what that means either.

Until very recently, Ireland was seen as Europe’s poster child of prudent reforms. Mr. Trichet himself highlighted Ireland as an example that Greece and other financially stricken nations should follow. His message was simple: If only Greece or Portugal or Spain would cut public wages, reduce the budget deficit and make structural reforms as Ireland had done, then growth could occur and default could be prevented.

But it is now apparent that Ireland has not done enough to stem its march toward further crisis. The ultimate result of Ireland’s bank bailout exercise is obvious: one way or another, the government will have converted the liabilities of private banks into debts of the sovereign (that is, Irish taxpayers), yet the nation probably cannot afford these debts. According to the Royal Bank of Scotland, Irish banks have debt worth 26 billion euros, or one-fifth of Ireland’s national income, coming due in the month of September alone. Ireland’s third-largest bank just announced it was likely to need 25 billion euros in total capital injections from the government (19 percent of G.N.P.), while Standard & Poor’s argues that this figure is too low. In total, the debts of Irish banks could easily result in a charge to government debt equal to one-third of G.N.P.

These debts need to be added to the fiscal deficit, which also remains dangerously out of control. This year, the government will run a deficit of 15 percent of G.N.P., and with nominal G.N.P. falling, it could well remain that high next year, even if the government cuts spending by the 2 to 3 percent of G.N.P. currently envisaged…

Peter Boone is chairman of the charity Effective Intervention and a research associate at the Center for Economic Performance at the London School of Economics. He is also a principal in Salute Capital Management Ltd.  Simon Johnson, the former chief economist at the International Monetary Fund, is the co-author of “13 Bankers.”

Read the full article from the New York Times Economix blog.

NINE EUROPEAN UNION member states have written to the European Commission asking it to change its accounting rules in a bid to try and artificially lower their official budget deficits.

The countries, mostly from Eastern Europe, have asked the bloc to consider changing its classifications so that the costs of reforming their various pension schemes do not count towards their budget deficits.

Lithuania, Latvia, Bulgaria, Sweden, Slovakia, Hungary, Romania, Poland and the Czech Republic say that reform of their pensions systems, while expensive, create long-term benefit while inflating their short-term budget shortfalls.

In a letter obtained by Reuters today, the countries backed a German proposal to introduce new penalties for countries which exceed the Union’s ‘glass ceiling’ of running a budget deficit of more than 3% of GDP.

But they wrote:

Maintaining the current approach to debt and deficit statistics would result in unequal treatment of Member States and thus effectively punish reforming countries.

The European Commission has described the proposal to change budgeting rules as a “relevant” one, but insiders believe it would be difficult to change the rules as they form part of the Stability and Growth Pact, amendments to which would require the assent of all 27 member states.

“There is likely to be some understanding for the position of the nine countries, but it is difficult to say how far it will go,” one source told Reuters. “To change the accounting rules everybody has to be on board, and some are not.”

Ireland is likely to face massive penalties from the EU one way or another, after its official statistical agency Eurostat ruled that Ireland’s costs of recapitalising Anglo Irish Bank would not be discounted from its budget deficit – meaning its deficit could be up to 24% of GDP, eight times the EU limit.