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Policy issues concerning Bailout

Social Justice Ireland met the IMF/ECB/EC 'troika' on Monday, October 17, 2011. We presented them with a Briefing document setting out a fully-costed set of proposals which would see the terms of the Bailout Agreement met but which would ensure that poor and vulnerable people were not further burdened
 

In September 2012, the IMF published its Article IV Country Report for Ireland as well as its Seventh Quarterly Review under the Bailout Agreement. 

A new campaigning network of local and global justice organisations, Debt Justice Action, has called on the government to stop paying the debts of the former Anglo Irish Bank / Irish Nationwide Building Society (INBS).

The ‘troika’ statement that the most vulnerable in society should be protected is very welcome. So too is their statement that the ‘troika’ are committed to helping those who need help.

The ‘troika’ has been told there are serious questions concerning their credibility on the economy and the vulnerable. At a meeting in Dublin with the ‘Troika’ (European Central Bank, the International Monetary Fund and the European Commission) today, Social Justice Ireland argued that:

The IMF's own review of Ireland's situation sets out the goals to be achieved on Government borrowing by 2015. It states that if the current projections are not achieved then "the savings committed will be delivered, if necessary through fallback options in relation to public sector wages and primary social welfare rates". Social Justice Ireland rejects this approach and continues to point out that alternative approaches are available to Government.

The ‘troika’ has been told that the reduction in Ireland’s borrowing in 2012 and subsequent years should be achieved by increasing taxation (but not income tax) by €2 for every €1 reduction in funding of public services.

The global economy is in a dangerous new phase according to the International Monetary Fund (IMF). In its World Economic Outlook published September 20, 2011, the IMF states that global activity has weakened and become more uneven, confidence has fallen sharply recently, and downside risks are growing. This slowdown will make it even more unlikely that Ireland’s Bailout Agreement targets will be achieved. 
The World Economic Outlook’s main conclusions include:

Background.
A three-year EFF arrangement with access of SDR 19.5 billion was approved on 
December 16, 2010. Following elections on February 25, a new coalition government with a 
comfortable majority took office on March 9. In light of a delay in the first review made necessary by 
the early elections, the authorities request to combine the first and second program reviews and, given 
the smaller immediate external financing needs, also request a rephasing of the arrangement.

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