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Austerity

A recently published IMF working paper ‘The Distributional Effects of Fiscal Consolidation’ shows that austerity does not work and will not work for Ireland. 

The findings of the paper shows that fiscal consolidation has had significant distributional effects by raising inequality, decreasing wage income shares and increasing long-term unemployment.

Austerity is not just bad for the economy. The latest evidence shows that it is also bad for people’s health. 

A new Caritas Europa study, reveals disturbing levels of poverty and deprivation in the five EU countries worst hit by the economic crisis; Greece, Ireland, Italy, Portugal and Spain.  It also finds that the prioritisation by the EU and its Member States of economic policies at the expense of social policies during the current crisis is having a devastating impact on people - especially in the five countrie

A new study from the Center for Economic and Policy Research (CEPR) raises very serious questions concerning the approach to recovery being followed by the ‘troika’ in EU countries including Ireland. The CEPR Co-Director Mark Weisbrot claims this study shows that “… the IMF appears to be pursuing a political and ideological agenda in Europe, with a very strong prejudice toward spending cuts and smaller government,”

The outcome of current negotiations on public service pay or on debt should not produce a situation where other sectors in Irish society will be further disadvantaged.

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

Ireland: 2012 Article IV and Seventh Review Under the Extended Arrangement—Staff 
Report; Informational Annex, Staff Supplement; and Public Information Notice 
 
The following documents have been released and are included in this package: 
 
 The staff report for the 2012 Article IV consultation, prepared by a staff team of the IMF, 
following discussions that ended on July 18, 2012, with the officials of Ireland on economic 

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