Irish deficit balloons after new bank bail-out

The Irish government has presented three austerity packages in just over a year.

In December 2009, the budget for 2010 slashed government spending by 4bn euros, cut all public servants' pay by at least 5% and reduced social welfare.

The measures include cuts of 760m euros in social welfare and 960m euros in investment projects.

Child benefit is being cut by 16 euros a month, bringing the lower rate to 150 euros a month and the higher rate to 187 euros a month.

A carbon tax has been brought in, set at 15 euros per tonne of CO2.

The Irish government has had to give staggering amounts of support to its struggling banking sector - the equivalent of 30% of the value of its economy.

Including that financial aid, the Irish deficit will be 32% this year - 12% without. The government aims to cut it in stages, to reach 2.9% by 2014.

Bad news came in September when figures showed the economy had shrunk in the second quarter from the previous three months.

Gross domestic product (GDP) fell 1.2% and gross national product (GNP), seen by some as a more accurate barometer of the economy, fell by 0.3%.

"ShepherdsDog" said
They'll just blame the feckin' English.