Ireland is poised to exit its EU-IMF bailout programme, but plans to keep its austerity measures in place, according to analysts.
Details of the last budget before leaving bailout conditions have been steadily leaking out. Further public spending cuts are expected as well as hikes in tax rates.
The Republic of Ireland has been called the most indebted country in the world, with debt issues in three sectors – the banks, private citizens, and the state.
The government is still borrowing about €1bn every month to fund public services, although it has made some progress in getting the state’s debt under control.
The secret of debt control is believed to be economic growth of some 3% or 4% for the coming few years. But the country is not long out of recession and obliged to operate in an economically fragile world.
Ireland has managed to retain its 12.5% tax rate for corporations and multi-nationals. But the government may come under renewed pressure to raise this should further funding help be needed, and the country’s banks are still struggling with debt and might not pass Europe’s stress tests next year.
