The Budget has been passed and the job of fixing our broken economy continues. It was a difficult but necessary process and everyone will feel the pain of higher VAT and some changes in social welfare eligibility rules. Thankfully we were able to help two groups particularly hard hit from the economic crisis.
The first group is the very low paid who will now be exempt from the universal social charge. Anyone earning less than ten thousand euro won’t have to pay. That’s a good development in my book.
The second group are the young people who bought their homes during the peak of the boom and who are facing negative equity, lower incomes and, often, unemployment. They are getting more mortgage interest relief to help them with their repayments. It’s proof that the Government understands their difficulty. It’s a pity the banks don’t.
All eyes are- again- on Europe. Some people are complaining that the EU will have more an oversight role in our economic affairs, They will “compel” us to balance the budget and “force” us to eradicate the structural deficit.
Having just had to pass a harsh budget to clean up the mistakes of the last profligate Government, I personally think this oversight can’t come quick enough.
The Celtic Tiger. And its ruinous legacy. Never, ever again.