The EU Commissioner, Ollie Rehn, is apparently examining whether the Government should make a greater adjustment than the €3.5 billion planned cuts in the forthcoming budget after lowering his forecast for Irish economic growth.
Rehn appears to believe that the solution to falling growth targets is to deepen the austerity programme currently in place under the supervision of the EU/IMF/ECB troika.
In reality, the more one-sided austerity is imposed, with its consequent hardship on lower and middle income earners, and the most vulnerable in society, the worse the prospects become for economic recovery.
This is what has happened over the past five years and the EU Commissioner, and his right wing allies across Europe and in Ireland, know this only too well. A further depression of domestic demand by taking more money out of the economy will retard rather than enhance growth.
Unless there is a plan to invest significantly in jobs and growth, as Congress has urged yet again in its pre-Budget submission in recent days, there can be no escape from the vicious cycle of austerity and recession and no return to sustainable economic growth.
