Key points: Strict Irish plan

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7 December 2009, at 16: 56 GMT last updated welfare spending cuts and increase in the tax is the fulfilment of which conditions by an international Bail-Out of the Irish Government has the toughest budget in its history the subscription orders presented euro (£ 5 billion; $8 billion) which contains weights.

It contains more information about tax rises and cuts expenditure in addition to the described last month when it launchd his four-year national recovery plan.

You will drastically to huge budget deficit of the country, which reduce is a requirement of the EU and IMF Bail-Out.

The latest measures include:

Prime Minister and Minister Paycorporation tax cuts 12.5%child take advantage of new income tax system introduced4 cents on a litre of Paymentno reduction Fuelextra to cut State pension supplement, are fuels.

In spite of pressure by other members which Dublin the rate would be euro-zone, which is said to increase corporate tax of 12.5%.

The Irish Government contends that a low rate of corporation tax is a cornerstone of the industrial policy and part of Ireland's international brand.

KST are also an exemption for new companies.

The Government said in November it would that planned 2.8 euro save one in social expenses until 2014 to 2007 values back.

It said it was necessary, because working age now more than twice their rate were social assistance in the year 2000.

"The most drastic reduce tax and increase the welfare by the very high real estate-related tax revenues of the State Treasury in the boom years taken were possible," he said.

Finance Minister Brian Lenihan "which can make State no longer", said on Tuesday.

It is a 10 euro per month use reduction in the child records. This means, for example, the benefits for the first child of 150 euros to 140 euros to be reduced.

However, there is no reduction of the State pension this year.

"We have significantly increased the State pension in the last ten years and it is the Government of the view that the security that has brought this for the elderly should be maintained," said Mr. Lenihan.

A piece of good news was the announcement of an additional 40 euro payment to households in receipt of winter fuel pump allowance due to the recent harsh weather.

VAT is from 21% to 23% by 2014 rise increase EUR 620 million a year.

"VAT rates 23 Member States now of 19% or more has increased in Europe in response to the current crisis, with some rates," said the Irish Government.

It will also consider imposing VAT on more types of were.

Dublin is planning a "basic" reform of the system of income tax, because it says that more than 45% of the people are exempt.

The Government wants more people in the tax net by lowering the thresholds, the bulk of the money from the recovery plan are to be raised in the fiscal year 2011.

The budget also detailed plans to abolish or restrict many tax breaks that use higher income groups to shelter income from taxation.

The top marginal rate of tax will be held at 52%.

The Republic national recovery plan included another striking - a cut in the value of public sector pensions already in payment.

2.8 Euros per year, they make almost 15% of the entire public service numbers and pension bill.

The Irish Government plans to reduce that by 4% by reducing pensions - tap turned off these costs EUR 100 million per year.

There was almost 124,000 public sector retirees in 2009. You see in the year 2011 cut their pensions.

Their cut those who pay going to have to retire after 2012 by 7%, which their pensions and retirement lump sum is cut anyway.

In addition to these measures already announced has the Government, that pay, is next Minister for senior cut.

"The content of the Taoiseach is reduced by more than 14,000 euros per year and the salary of Ministers be reduced by more than 10,000 euros per year,", the Minister of Finance of Lenihan said.

In addition, the Government sets a CAP in the public sector pay at 250,000 euros (£ 210,000; $333,000).

The minimum wage will be cut by a EUR to 7.65 EUR per hour.

The Government said a cut was essential because existing was the out-of-step with an economy "where is GNP fell by 19%."

"Other labour market regulations deny job creation - especially in sectors where unemployment among the young and unskilled workers is the most common." "Crucial reform is necessary."

The United Kingdom, the Republic hopes that reduction in the public sector more than by job creation in the private sector will be the planned 24,750 jobs.

The sum of numbers to Bill for public workers to 1.2 billion euro will fall by 2014.

Dublin, said that labour market reforms were expected in the next few years 150,000 direct and indirect jobs create 150,000. "We also ambitious targets for new foreign direct investment, tourists, and exports have", said the Government.