Press Release: IMF Report shows radical change in Budget plans required

The IMF’s World Economic Outlook admittance that it underestimated the impacts of austerity measures on the Irish Economy shows that the claim that austerity policies will improve Ireland’s deficit and get us out of the recession is fundamentally flawed.

The IMF report shows that Ireland had the second highest austerity measures in the developed world in 2010. It’s forecasts for economic growth for Ireland are well below the Government’s predictions.

Dr Rory Hearne, spokesperson for Claiming Our Future said:
“The plans to implement another drastic austerity Budget in December needs to be reconsidered in the light of the IMF’s most recent report. More cuts are highly likely to drag us further into recession and make the unemployment crisis even worse.”

Siobhan O Donoghue, Claiming Our Future, said: “The IMF report shows that austerity does not work. We have outlined an alternative approach in Plan B which is based on government-led stimulus investment, raising taxes on higher incomes and maintaining spending on public services. This alternative would provide employment and growth.”

Other organisations and groups such as TASC, NERI, ICTU, Social Justice Ireland, and the Community Platform have also outlined progressive budget proposals that show there are alternatives.

Austerity is self defeating in a recession like our current one. Cutting spending on welfare, public services and the wages of public sector workers and raising taxes on lower and middle income households takes further money out of the economy. Austerity further domestic demand and growth and puts more people out of work leading to higher spending on welfare. We are in a vicious downward spiral that requires an alternative policy approach.

For Further information contact:
Rory Hearne, Claiming Our Future,
Siobhan O Donoghue, Claiming Our Future,
Claiming Our Future’s Plan B

Austerity isn’t working. Taking billions of Euros out of our economy each year increases emigration and unemployment as public services are cut to the bone. Simply put, we cannot cut our way out of recession.  Ireland needs a Plan B. Investment programmes in areas such as high speed broadband and renewable energy will create jobs, grow the
economy and protect public services. Private and public funds in Ireland and Europe, together with a fairer tax system, will raise the money needed.
By supporting Claiming Our Future’s “Plan B” Campaign you can help get
Ireland back working again, an Ireland based on the values of
equality, sustainability and solidarity.
See more information on Plan B at


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