Irish Eyes Are Crying, Part 8

Things are moving rapidly in Ireland now.  The country has agreed to the EU/IMF bailout, but Irish Prime Minister Brian Cowen is submitting an even tighter austerity budget for 2011 that will make draconian cuts in services and jobs, despite the complete and documented failure of Ireland's 2010 austerity plan in this "Irish Eyes" series of posts.

As a result, Ireland's Green Party is telling Cowen to kiss its Blarney and is pulling out of the government, calling for new elections in January.

Ireland’s Green Party will quit the government after next month’s budget is passed and talks with the European Union on an aid plan are completed, leaving Prime Minister Brian Cowen without a majority in parliament.


The Green party plans to support the government’s budget and wants an election in January, leader John Gormley said at a press conference in Dublin today. Irish voters “feel misled” by the government, he said.

Ireland yesterday became the second euro-region state to ask for external help after surging costs to bail out the country’s banks pushed up the budget deficit and eroded investor confidence. The aid, which Irish officials said as recently as Nov. 15 they didn’t need, marks the latest blow to Cowen’s popularity, which has plunged as he raised taxes, cut public workers’ pay and pumped billions of euros into lenders.

“I suppose it’s not very surprising. It’s clear that the public are very fed up,” said Alan McQuaid, chief economist at Bloxham Stockbrokers in Dublin. “We need elections sooner rather than later. It makes sense for them to support the budget and then walk away.” 

Full statement from the Green Party's John Gormley here, at Tyler's place.  There's a pretty good chance that Ireland's 2011 austerity budget will blow up, and from that point it's anyone's guess.