As a quid pro quo for debt restructuring
- Greece has promised to reduce its 750,000-strong broader public sector by 150,000 by the end of 2015,
- The minimum wage has been reduced to €2.20 per hour
- Savage pension cuts have been implemented.
- Large public sector pay cuts are being enforced.
- Massive rises in direct, indirect and property taxation have come into effect.
Mary Lou McDonald and Sinn Fein need to go back to the economic drawing board. They have not thought out the likely consequences of default.Ireland needs concessions on the promissory notes and banking debt. At this juncture jaw-jaw is better than war-war. Hopefully a deal can be reached on the Anglo promissory notes by March. In addition Ireland is hoping that the ESM can be used to retroactively tackle some €30bn of bank debt relating to the recapitalisation of Bank of Ireland, AIB and Permanent TSB. This is a more rational approach than that advocated by Sinn Fein. Populist posturing does not an economic policy make. Sinn Fein is not alone in this. Shane Ross and Stephen Donnelly consistently surf the populist wave. Whilst Donnelly endeavours to come up with solutions, Ross engages in inane criticism devoid of answers.