Dear Friend and Reader,
When’s the last time you heard of US politician’s getting a pay cut to deal with the financial crisis? That’s exactly what has been announced in Ireland today to deal with the economic meltdown, which has been sweeping out from the US and across Iceland, to the European Union, and to the rest of the world.В
Over Columbus Day weekend, five EU countries introduced bailout plans, and Ireland is now taking steps to prevent a bailout by cutting agencies, eliminating middle management and, yes administering 10% pay cuts for politicians.В
Ireland’s Minister for Finance, Brian Lenihan, has recently finished his speech on the nation’s budget. The Budget is usually brought forward in December, but considering the financial crisis, it was pushed to today.
41 State bodies and agencies will be cut, and “ministers, junior ministers and some senior civil servants will take a 10 per cent pay cut,” The Irish Times reports.
Those earning more than $100,000 will see a one percent increase in taxes. In the health sector, the middle aged in middle management will be pushed to retire. Lenihan is calling it a “targeted voluntary early retirement scheme.”В
“The State pension will rise by €7 a week, while the automatic entitlement to a medical card for the over 70s will be removed. Those who do not qualify will receive a cash payment of €400 a year.” Sounds a bit like McCain’s health plan for the entire country.
Brian Lenihan took over as Minister for Finance after Brian Cowen took over as Taoiseach (Prime Minister) in May 2008. Former Taoiseach Bertie Ahern left in May amidst financial scandal.
You can watch the budget proposal live here, (almost as exciting as last week’s US presidential debate) and it will also be available recorded once the meeting is over.
As our Treasury Secretary, Henry Paulson, nips at the heels of the European Union and mimicks their financial plans like an insecure little brother (infusing banks with cash was the European idea, not Paulson’s), watching Ireland attempt to prevent its recession from turning into a full-blown crisis is like watching the re-make of an original film: and, for once, this one looks a lot better. В
Yours & truly,
Rachel Asher