Categorized | Economics

The Government must stop creating new uncertaint​ies

FF’s 4 year plan (whether you agreed with it or not) did set out exactly the fiscal measures that would have to be taken to get Ireland’s deficit back in line so that we could return to the markets and remove ourselves from the grip of the EU-IMF.

The secondary purpose of the plan was to give certainty to people as to what would be happening over the next 4 years.

People need certainty, and when they have it, the domestic economy will be able to adjust and return to spending within the new limits laid down by the 4 year plan.

What FG and Labour have done is removed all certainty and have put us right back to where we were in 2008/9 – not having a clue what’s going on and what’s going to happen.

This uncertainty will mean people will continue to save at ridiculous levels. This saving is killing the economy.

The Government must stop creating new uncertainties – we don’t know what’s going to be cut and we don’t know what new taxes there will be.

Instead of setting out a road map like the 4 year plan, the Government have done the reverse, and this new uncertainty that Michael Noonan has created will compound the worsening affects of the recession. which will probably lead to the deficit not closing quickly enough and a 2nd EU-IMF bailout being required.

Leave a Reply