THE GOVERNMENT will seek to change key aspects of the €67 billion rescue package with the European Union and International Monetary Fund during negotiations with the troika over the next eight days.
The Government confirmed yesterday a key element of talks on targets will be conditions in the memorandum of understanding for December’s budget stipulating increases in income taxes and cuts in social welfare rates.
Taoiseach Enda Kenny and Tánaiste Eamon Gilmore have committed the Government to not increasing income taxes or reducing social welfare rates.
The previous government made commitments to raise an additional €250 million in income taxes each year for three years.
The Government will also outline the main savings identified by the Comprehensive Review of Expenditure, overseen by Minister for Public Expenditure Brendan Howlin. This is its main vehicle to find alternative adjustments to tax increases and social welfare cuts.
Mr Howlin confirmed the sale of State assets would be a key part of the talks. The fund has said it wants Ireland to raise €5 billion, but the Government has committed to no more than €2 billion.
He told the Dáil what would be done with the money was more important, and said the Government was committed to use it to invest in jobs initiatives.
“This will be an important part of our interaction with the troika. It will allow us to reinvest resources in the next round of job creation. We want to give a clear message to the troika and to all our international partners that we must grow our economy out of the hole in which the previous administration left it,” he said.
Mr Howlin confirmed the review was not complete.The department said yesterday that all the reports on each department had been completed but that meetings with bigger spending departments were continuing.
