Ireland imposes further cuts; more to come

Ireland's government imposed further spending cuts on Monday with possibly more still to come as the European debt crisis throws up a disturbing cocktail of slowing growth and zealous austerity across the currency bloc. Ireland is only half-way through an eight year cycle of swingeing spending cuts and tax hikes as it seeks to get its budget deficit, currently the biggest in the industrialised world, under control as part of an EU-IMF bailout.
Held up as a role model for other indebted nations for its success in pushing through nearly 21 billion euros in austerity measures - equivalent to around 13 percent of gross domestic product (GDP) - without any social unrest, Dublin has nevertheless been forced to drive the knife even deeper. "No government, whatever its numbers, wants to be the bearer of bad news. But our options are extremely limited," Minister for Public Expenditure and Reform Brendan Howlin told a packed lower chamber.