David McWilliams: Budget a mere sideshow to Merkozy's grand plan
Published 07/12/2011 | 17:00
In the past 24 hours, three dramatic developments have taken place, each of which will have a profound effect on your life in the next few years. Although all three are related, it is not quite clear which one will be most significant.
First, of course, is our own Budget. It has been well flagged, much leaked and seems to be more of a holding exercise than a decisive move one way or another. Many will argue that there is little point in talking about "austerity" while sticking broadly to a plan which sees state spending running at €57bn while State revenue is €20bn less than that.
Others will point out that if the State doesn't fill the gap by spending then nobody else will. The fact is that people are not spending, which means that the economy would contract even more if the State cuts too quickly.