Irish unveil harshest cuts, tax hikes in history

Ireland’s Minister for Finance, Brian Lenihan (L), listens as Prime Minister Brian Cowen speaks during a press conference to announce the National Recovery Plan, in Dublin, on November 24, 2010. Ireland kept its prized low corporation tax on Wednesday, but outlined plans to overhaul income and sales levies, as the debt-laden eurozone nation braced for a multi-billion-euro EU-IMF bailout. Irish Prime Minister Brian Cowen presented a series of tax rises and cuts to public sector pay, pensions and social welfare in a bid to slash a huge deficit and save 15 billion euros (20 billion dollars) by 2014. – AFP Photo

DUBLIN: Ireland has unveiled the harshest budget measures in its history, a four-year plan to slash deficits by euro15 billion ($20 billion) so it can receive a massive bailout from the European Union and the International Monetary Fund.

The austerity plan axes thousands of state jobs, trims welfare benefits and pensions, and imposes new taxes on property and water. In all, it seeks to cut euro10 billion ($13.3 billion) from spending and raise euro5 billion ($6.7 billion) in extra taxes from 2011 to 2014.

EU compromise package for tariff cuts

The EU had approved a raft of time-bound trade concessions for Pakistan to help it recover from the recent flood disaster. File Photo

The European Union has considerably watered down its proposed time-bound scheme of tariff cuts for Pakistan to clinch a deal from its member states with strong textile industries. 

The final package of trade concessions that has emerged after a compromise between its supporters and opponents, say Pakistani textile exporters, would have a “dampening effect on the possible export growth” to Europe because of the newly agreed quantitative restrictions on duty-free import of some top textile products from the country.

Euro strengthens after EU agrees Greece deal

LONDON: The euro has strengthened against the dollar and the pound after eurozone leaders agreed a financial aid package to help debt-laden Greece.

The leaders agreed to provide 22bn euros (£20bn) should Greece run into difficulties borrowing money to service its high debt levels. On Friday the euro rose by more than one cent to to $1.3393 before falling back slightly.

Euro recovers, Asian shares fall on earnings jitters

HONG KONG: The euro recovered from early losses on Friday after Pakistan dismissed rumours of a coup while Asian stocks fell as investors fretted about the outlook for corporate earnings.

The dollar eased about 0.2 per cent against a basket of major currencies, pulling back from an overnight rally as investors unwound long dollar positions ahead of the year’s close.

Greece’s fiscal woes continued to weigh on the euro but the currency found support after Pakistan dashed rumours of a coup, which in early trade had sent it skidding further to a nine-month low against the safe-haven Swiss franc.