4 year budget framework agreed by the Irish Government with the IMF/ ECB
Today saw the launch of the 4 year budget framework agreed by the Irish Government with the IMF/ ECB.
This document forms the basis of agreement where the IMF/ECB agree to inject approx €85 billion into Ireland in a combination of sovereign debt and bank refinancing.
This refinancing agreement is designed as a roadmap to regain control of Irish government borrowing and to fund a normalising of the Irish banking sector.
Economic growth is projected at an average of 2.5% per annum up to 2014 under this plan. When we combine this level of economic growth with the projected spending cuts and increases in taxation it is projected that government borrowing will be brought down to the European target of 3% of GDP by 2014.
The Irish government targets unemployment levels below 10% by 2014.
Below please find a link to a summary of the framework document.
http://www.budget.gov.ie/Leaflet.pdf
The framework and subsequent budget expected in December have received reasonable cross party support in the Irish parliament today.
It is expected that the first of 4 difficult budgets will be ratified by parliament within two weeks.
Ireland's 2010 unemployment and balance of payments figures show signs of an economy that is emerging from a deep recession.
This support programme agreed with the IMF will mean that Ireland will have access to competitively priced funding as the economy gets back to balanced growth and increased competiveness. This growth is achieved by a continuing emphasis on exports which showed a 6% growth in 2010.
Irish exports are forecast to equate to 100% of GDP by the end of 2010 - one of the highest export to GDP ratios in the developed world (second only to Luxembourg). The measure is a significant increase on the corresponding figure of 80% GDP from five years ago and demonstrates the growing importance of the export sector.
In the four year plan, Ireland's corporation tax rate remains at 12.5% which is a key element of the economic recovery programme.
This document forms the basis of agreement where the IMF/ECB agree to inject approx €85 billion into Ireland in a combination of sovereign debt and bank refinancing.
This refinancing agreement is designed as a roadmap to regain control of Irish government borrowing and to fund a normalising of the Irish banking sector.
Economic growth is projected at an average of 2.5% per annum up to 2014 under this plan. When we combine this level of economic growth with the projected spending cuts and increases in taxation it is projected that government borrowing will be brought down to the European target of 3% of GDP by 2014.
The Irish government targets unemployment levels below 10% by 2014.
Below please find a link to a summary of the framework document.
http://www.budget.gov.ie/Leaflet.pdf
The framework and subsequent budget expected in December have received reasonable cross party support in the Irish parliament today.
It is expected that the first of 4 difficult budgets will be ratified by parliament within two weeks.
Ireland's 2010 unemployment and balance of payments figures show signs of an economy that is emerging from a deep recession.
This support programme agreed with the IMF will mean that Ireland will have access to competitively priced funding as the economy gets back to balanced growth and increased competiveness. This growth is achieved by a continuing emphasis on exports which showed a 6% growth in 2010.
Irish exports are forecast to equate to 100% of GDP by the end of 2010 - one of the highest export to GDP ratios in the developed world (second only to Luxembourg). The measure is a significant increase on the corresponding figure of 80% GDP from five years ago and demonstrates the growing importance of the export sector.
In the four year plan, Ireland's corporation tax rate remains at 12.5% which is a key element of the economic recovery programme.
