Irish PM warns of tough cuts budget next week, but predicts four-year route back to economic health
Ireland's prime minister, Enda Kenny, has warned of a tough budget ahead for the Irish this week, but said the country is on track to restore international confidence in its economy.
In a 10-minute address on Irish television on Sunday night, Kenny said the government's priority was to create jobs.
Despite rising unemployment, falling tax revenues and the deepening crisis in the eurozone, he said: "I am very optimistic for the future." He said Ireland was "on a four-year path to recovery," but admitted the programme would include "cuts to many worthwhile projects".
Most of the detail Kenny referred to in his speech has already been flagged up before, such as the shedding of 23,000 jobs in the public sector by 2015. He also insisted that there would no increase in income tax. The extra revenue required in this budget would be generated by indirect taxation, he said.
He also thanked the Irish people for their courage in enduring rising unemployment rates and cuts in public services.
The last time a taoiseach felt it necessary to address the nation before taking harsh economic measures was when Charles Haughey did so 31 years ago. In January 1980, he told the country "We are living away beyond our means" and that it was time to make deep cuts in public expenditure and increase taxes.
Kenny and his Labour partners in the Fine Gael-Labour coalition will be hoping that they can convince the republic that the austerity programme is necessary to rebuild the Irish economy.
But a large proportion of the Irish television audience did not tune into his attempt to soften up the public before the budget.
Ireland's TV3 channel refused to reschedule the X-Factor vote that took place at the same time as the taoiseach's address. The station said the government information service in Dublin failed to give it enough time to change scheduling.