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Wednesday, 24 November 2010 - Embattled Irish PM to present austerity plan
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    Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Weekend Edition Top Stories Most Popular Photos Full Coverage Sitemap Embattled Irish PM to present austerity plan AFP - Wednesday, November 24 Send IM Story Print Embattled Irish PM to present austerity plan DUBLIN (AFP) - – Beleaguered Irish Prime Minister Brian Cowen presents Wednesday a four-year austerity plan in a key step to an international bailout for the debt-ridden eurozone country. The unveiling of the austerity measures roadmap precedes Cowen's submission to parliament December 7 of a budget which is considered crucial to obtaining rescue loans which Irish broadcaster RTE reported were worth 85 billion euros (113.7 billion dollars). The European Union/International Monetary Fund bailout is intended to help shore up Ireland's public finances and ailing banks. In turn it is hoped that fears of contagion within the eurozone's other heavily indebted countries will be eased. Focus: After Ireland, Portugal now in market crosshairs The EU's hope was Wednesday looking misplaced as the euro sank as low as 1.33 dollars while Ireland's standing in the debt markets also took a hit when its credit rating was downgraded. Rating agency Standard and Poor's said it was lowering its short and long-term credit ra tings for Ireland by a notch, and placed it on credit watch, saying the Irish state looked "set to borrow over and above our previous projections." As the euro continued its slide, German Chancellor Angela Merkel warned "we find ourselves in an extraordinarily serious situation." As anger at Cowen and the Irish government grew at home, Portugal -- tipped to be the next eurozone economy to need a bailout -- was bracing for a general strike later Wednesday. Cowen survived calls from opposition parties for a snap election Monday and said he would go to the polls early next year when he had seen the budget through parliament. Denying he was clinging to office, Cowen told parliament that passing the budget was his first priority and overrode any other political considerations. Related article: Spectre of emigration haunts Ireland "There is no question of the characterisation of clinging to office being my motivation. That is not my motivation," he told lawmakers. Cowen said he expected the various budget laws would be passed. "I believe there will be support for this budget," he said. "This is a matter of national importance to us all for the country... for the future of everyone." The parliament is unlikely to vote on the budget until January, meaning that an election could not take place until February or March. The government was rocked after a week of negotiations in which it insisted Ireland did not need external help, only to then cave in and request assistance. Sinn Fein, which has four lawmakers in the parliament, or Dail, tabled a motion of no confidence in Cowen on Tuesday, saying that his government was a "charade which is an insult to the Irish people". Cowen was also under pressure within his own Fianna Fail party, but a proposed vote of no confidence in the leader failed to materialise when the party met late Tuesday. According to RTE reports, Irish banks were to use the loan to raise capital reserves from eight to 12 percent as the EU and IMF sought to reassure depositors in the Irish financial system and prevent a flight of money out of the country. As a result of the capital injection, the Irish state was to take a 99.9 percent stake in Allied Irish Banks (AIB) and to become majority stakeholders in the Bank of Ireland, which is currently 36 percent state owned, RTE said. The EU has agreed in principle to dip into a 750-billion-euro fund, the European Financial Stability Facility, set up in May after a 110-billion-euro EU-IMF bailout of Greece. Justifying the cost of the bailout, German Finance Minister Wolfgang Schaeuble said Germany must take responsibility "otherwise there will be untold economic and social consequences for our country." Focus: EU quick to douse Irish fire, but experts warn more to come Recommend Send IM Story Print News Search Top Stories Portugal braces for biggest ever strike Embattled Irish PM to present austerity plan Tigers 'close to catastrophe': Russian PM Fed slashes US growth forecasts Controversial pope book already selling fast More Top Stories » ADVERTISEMENT Most Popular Most Viewed Most Recommended 'Naked' airport scanners may be 'dangerous' N.Korea shells island in South, causing injuries DiCaprio in plane engine scare: report World leaders scramble for funds to save the tiger Britain's Prince William to wed in April at abbey More Most Viewed » 'Naked' airport scanners may be 'dangerous' EU fines 11 airlines 800 million euros for air cargo cartel Pilgrims stone 'devil' as Muslims celebrate Eid World leaders scramble for funds to save the tiger More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Weekend Edition Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo! Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Entertainment Photos Yahoo! News Network Copyright © 2010 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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