€2bn cut is only the start

The government’s proposed spending cuts are likely to prove inadequate to deal with the problems posed by the gaping deficit in the public finances.

31st January, 2009

The government is on the brink of securing agreement with the trade unions on a package of measures to deal with the financial crisis facing the country. The negotiations are continuing throughout the weekend, but both sides expect that some form of a pay cut for public servants will be agreed. Various concessions will be agreed to make it a more palatable move for the unions to adopt.

If agreement is secured, the focus will...

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