Austerity Measures: is an official action taken by a government in order to reduce the amount of money that it spends or the amount that people spend. There are many countries that are effected in the Euro zone.Portugal,Spain,Ireland, and Greece are the most affected countries in the Euro zone crisis. It has been noted that Ireland was one of the most affected countries with the Euro crisis.
To put the scale of Ireland’s austerity measures into context.Many austerity measures have been made by the new Irish elected government. Starting by increasing the value added tax rate in the country from 17 % to 23%. about €30 billion worth of austerity measures (cuts to public spending and tax increases) have occurred since the crisis began at the end of 2008. In scale, these total just under a fifth of the current size of Ireland’s economy (GDP €160 billion). To apply the same level of austerity across the EU, with its GDP of €12.5 trillion, there would have to be €2.4 trillion worth of tax increases and spending cuts (Oconnior,2011).
The impact of the crisis is being felt most strongly in Ireland- where it has had a devastating effect on the lives of ordinary people. For example, more taxes has been put in the people with medium income. It generally affected the life of people with medium and low income.
http://www.social-europe.eu/2011/02/irelands-austerity-woes/
By: Mohammed Al-Galal
with the help of : Ibrahim Almaznaee
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