EU strict drive country

6 April 2011 last updated at 21: 08 GMT Portugal has a wave of protests public sector cut protection Europe cuts for a generation is seen in the grip of the tough austerity measures - some of the lowest public sector.

Shockwaves are still by the financial crisis of 2008, feel that bank lending paralyzed and left Europe's huge budget deficit and public debt.

In the troubled 17-nation euro zone Greece and the Irish Republic received huge Bail-Outs last year from the EU and the International Monetary Fund (IMF). Portugal is next in the series for such a rescue.

Investors fear of the debt of this 'Peripheral' eurozone countries sent floating interest rates (yields) on their Government bonds, making it more difficult for them, on the international markets to borrow.

The 27 EU Member States want their budget deficits to a maximum of 3% of GDP by the year 2014-15, cut, so what belt measures are more tightly strapped countries take?

Caretaker Prime Minister José Sócrates, on 6 April, said he the EU had asked for financial aid - a movement that had been long expected. He joined a new austerity package in March after the opposition rejected. He is acting PM until an early election on 5 June.

Various strict measures have been adopted already. Top earners in the public sector, including politicians, see a 5% pay cut. VAT (value added tax) increase by 1% and is income tax hikes for those earning more than 150,000 euros (£ 131,000). The defense budget is drastically shortened and two high-speed rail projects are moved have been.

Public services, including flights and garbage collection, were paralyzed by a general strike on November 24 on the cuts.

In December, the former Irish Government adopted a EU IMF Bail-Out 85bn worth euro (£ 75bn; $119bn). But the new coalition Government by Enda Kenny, the interest rate on the credit would like to receive reduced.

Since 2008, euro, a huge hole in public finances has the cost of bailing out the affected banks 46bn. But that costs will increase euro to almost 70bn because Bank stress tests, published in March 2011, showed that four major banks would have to be cleaned up.

The toughest budget in the history of the country contain a promise, trim the deficit from 6 euros in 2011. Euro has billion Government spending, lowered with all officials to at least 5% salary and social welfare reduced slashed.

The conservative liberal democratic coalition Government has announced the biggest cuts in government spending since World War II.

It is estimated that around £ are between savings be made over four years. The plan is, deleted 490,000 public sector. The most budget cuts Whitehall departments face of 19% on average. Is the retirement age from 65 to 66 to 2020 to rise.

The budget deficit is about 10% of GDP and unemployment - 2.53 million - is officially at the highest level since 1994.

Increased public anger about the cuts. More than 250,000 people demonstrated largest protest of the city in London on 26 March - since the Iraq war 2003.

France has announced to loss potentials euro (£ revenues) to cut expenditure in the next three years. It includes close savings through tax loopholes and withdrawing the temporary economic programs measures.

The highest earners must pay income tax also an additional 1%.

The plan, the retirement age of 60, to increase 62 and the full State pension age from 65 to 67 provoked major protests and strikes over the past year.

The Greek Government at the end of its economic problems by the drastic cuts in expenditure and increase tax revenues in exchange for a EUR 110bn (£ current) Bail-Out from the EU and IMF required.

The rescue deal agreed in may, after Greece's budget deficit - 13.6% of GDP - turned out to be much higher than originally reported.

Efforts be made to tax evasion and fight to prevent government corruption. Early retirement schemes be reduced is. On the average retirement age from 61.4 to 63.5 rise set.

Public sector bonus payments are to be scrapped; Salaries and pensions for at least three years frozen public sector; VAT will increase from 19% to 23% and taxes on fuel, alcohol and tobacco by 10%.

The cost-cutting measures have caused public sector strikes and violence on the streets of Athens.

Founded in the centre right coalition, after months of negotiation on 8 October said, he wanted the budget cut to 18 euros ($ reinsurance segment; £ 15 billion euro) 2015.

But the new Government is to adopt themselves to the radical freedom, legislation, and there are doubts about the long-term viability.

Unemployment has doubled since more than - 20% in 2007. It is the highest rate in the EU and Spain's biggest economic problem.

The Government approved an austerity budget for 2011 includes an increase in taxes for the rich and 8% spending cuts.

Government workers had reduced their pay by 5% and salaries will be frozen for 2011. The retirement age is 67 is raised.

Increase the taxes on tobacco by 28% and Madrid also plans to sell 30% of the Spanish National Lottery and a minority stake to airport authority of the country.

Proposed the Government wage cuts of 25% and pension cuts of 15% in May to reduce the country's budget deficit.

It gave resignation protests and Interior Minister Vasile Blaga after thousands of police officers on strike over the 25% pay cut went.

Romania's economy shrank more than 7% in 2009 and it needs to meet an IMF Bail-Out to the wage bill.

The Government approved austerity measures reinsurance segment euro for 2011 / 12.

Italy aims, public sector pay cut and freezing new hires. Only an employee is replaced for all five left.

Public sector pensions and local government spending are also targeted, and there are plans, down on tax evasion. Medium for city and regional authorities will be reduced expected by more than 13 billion euro.

The Government plans the budget deficit to a record zurückgeschnitten to reduce euro by 2014. The total deficit in the year 2009 was 3.1% of GDP, but it will be more than 5% for the year 2010.

The plans include a reduction of subsidies for parents, 10,000 government job cuts over four years and higher taxes on nuclear power.

In contrast to many of its neighbors Germany enjoys strong economic growth - GDP grew by 3.6% in 2010. Unemployment is lower than before the 2008 crisis.

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Key points: Strict Irish plan

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.

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