"Ireland debates the limits of austerity"

from reuters........

"In an age of austerity, Ireland is struggling to decide what is important. Dublin has pushed through nearly 21 billion euros ($29 billion) in spending cuts and tax increases, equivalent to more than 13 percent of Gross Domestic Product (GDP). Investors have been impressed by the calm in Ireland. In contrast to Greece, Britain and Spain, there has been little social unrest.

But as the cuts continue, it's getting harder to decide what should go next. The seven-month old coalition government, headed by Enda Kenny's center-right Fine Gael party, needs to find another 12 billion euros in savings or increased tax receipts between 2012 and 2015 -- probably more if global economic prospects worsen. The cuts are required by the European Union and International Monetary Fund in exchange for 67.5 billion euros in loans. Outgoing European Central Bank chief Juergen Stark told the Irish Times this week that the country should cut further".............READ MORE