Sharing the headlines with Obama's tax plan
Published 08/12/2010 | 05:00
THE eyes of the world were on Ireland during the IMF's visit, but international reaction to the latest austerity measures was far more muted yesterday.
Many international media outlets did report, however, that European shares had risen on the back of the Budget.
The 'Financial Times' said that European equities jumped to a three-week high on expectations our Budget would be passed. It reported "exuberant gains" in our financial sector with the banks who caused the crisis seeing shares rise by up to 18.5pc.
It also spoke how our budget deficit is set to expand to a "jaw-dropping 32pc" and quoted a number of people who despair of our future.
"I'm afraid for the future, I'm afraid for the country and everyone around me," said Maeve, a retired lecturer who broke into tears when talking about economic hardship at the Moore Street market in central Dublin.
"I look at the misery around me and wonder what will happen to this country."
Reuters reported that stocks around the world rallied thanks to a combination of our Budget and tax changes introduced by US President Barack Obama.
"The likelihood that the Irish Budget will pass and the extension of US tax cuts are working together to boost risk appetite, which should last for the next few days but then dissipate," said Mark McCormick, currency strategist at Brown Brothers Harriman in New York.
The BBC said there had been a "plethora of benefit cuts" while the 'New York Times' had previewed our Budget and quoted one pensioner who said we have been "invaded many times before but never owned".
The 'Guardian' questioned the merits of the cuts, pointing out that every package they have introduced has actually depressed the economy -- resulting in them "coming back for more".
"The Dublin government has yet to explain why repeating the policy will yield a different result this time -- the underlying deficit having almost doubled following its desolation of the public sector," it wrote.
Comments on the news reports also flooded in from members of the public.
"It was always on the cards, the boom was too big, any fool could see that," wrote one of the Sky News website.
"The Irish were deluding themselves if they thought that the economic growth fuelled by EU money would last forever."