Alternative budget could save 75,000 jobs

Wednesday 26th June 2013

Research published by the Nevin Economic Research Institute (NERI) today shows how an investment stimulus, combined with increased taxes on capital and the top earning 10% of households, could save 75,000 jobs over two years.

The trade union-backed think-tank also said job losses would inevitably result from the Government’s current budgetary approach.

The findings are contained in NERI’s latest Quarterly Economic Observer, which proposes:

  • Full use of the proceeds of the ‘promissory note’ deal to reduce the fiscal consolidation by €1 billion in the forthcoming budget
  • An investment stimulus of €4.5 billion over the next 30 months and
  • Increases in capital and income taxes for the top 10% of households (by income).

NERI’s alternative approach would mean no further cuts in current public spending programmes next year. The Government has already pledged to stop cutting capital spending.

NERI director Dr Tom Healy said an alternative budgetary approach was entirely possible. “We can reach the target of a 3% government deficit  in 2015, while directing most of the fiscal adjustment towards taxes for those who can afford it. It is vital that we retain key public services in education and health while safeguarding the incomes of those who are most vulnerable,” he said.

European trade unions call for €280 billion jobs invest