Why business commentators say Ireland’s austerity package won’t work

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Ireland’s austerity package is built on hope, but nothing else.

I’ve already noted that it will rile the whole of Europe because there’s no move on corporation tax. But it’s then fascinating to note that Business Insider says it won’t work either:

Then there's the fact that all of the revenue hikes are to fall on the backs of consumers and retirees (there will be a hike in pension-related taxes) and not on corporations or banks, which may be inevitable, but it's the kind of strategy that will flip out the public street and cause riots.

I didn’t say that.

Sober business journalists did.

But they’re right.

Just as they’re right to point out that believing Ireland will grow whilst suffering these cuts is plain daft and hoping that’s its cost of borrowing will fall to 4.4% is just plain crazy.

Sure the Ireland can pass this budget.

But they can’t deliver it.