BRUSSELS (MNI) – The situation in Ireland is “certainly a very
tense situation,” Austrian Finance Minister Josef Proell said Friday,
but he reiterated that Ireland is ready to take “massive” action to
correct its deficit.
However, Proell would not comment on the likelihood of the Irish
plan succeeding, saying that he needed to see the government’s detailed
plan before doing so.
“It is certainly a very difficult path,” he said.
“It is certainly a very tense situation in Ireland” he said,
suggesting that Ireland’s deficit numbers — now estimated this year to
be 32% of GDP once bank bailout bills are counted — are unprecedented.
“But the Irish minister made it clear to us yesterday that Ireland
again…will massively intervene to reduce the deficit and then one will
be able to see more clearly how Ireland can pull itself out of the
deficit crisis,” he elaborated.
The discussion about further courses of action in countries such as
Ireland and Portugal and necessary further measures stood “in the center
of the discussion,” Proell said.
“We also spoke with colleagues from the rating agencies today about
what proposals for improvement for the future can be made,” he added.
Turning to the topic of a financial market transaction tax, Proell
said that in Austria he “already announced a proposal” for such a tax,
but he clarified that it should be implemented after the crisis.
Proell would not specify whether money gained from such a tax
should go to national or EU authorities, but he predicted that a tax of
0.01% could yield earnings of E200-250 billion globally and E100 billion
for Europe. Such a small tax would not impair the financing ability of
small and medium-sized enterprises, Proell assured.
Proell said finance ministers, who gathered here for meetings this
week, had discussed the idea of European countries rotating seats at the
IMF, recognizing that developing countries should have stronger
representation there.
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