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Government must heed IMF warnings on austerity

24 January, 2012 - by Pearse Doherty TD

Speaking today in response to comments from the IMF on the state of the global and European economies Sinn Féin Finance spokesperson Pearse Doherty TD has called on the Government “to heed the warnings of the IMF on austerity and start investing in growth”.

Deputy Doherty said:

“Today the IMF issued a series of stark warnings to political leaders in Europe. They downgraded their global growth projections for 2012. They said that austerity was blocking a return to growth. They said steep cuts would undermine market confidence. They said that the crisis in the Eurozone was stalling a global recovery.

“In a thinly veiled rebuke to EU leaders they called for an EU response to the banking crisis; for further reductions in ECB interest rates; for action on unemployment; and for credit to be directed to households and businesses.

“All of this confirms what Sinn Féin has been saying for months, namely that the approach being taken by the government and their EU counterparts simply isn’t working. It also supports our argument that bank recapitalisation should be funded by EU institutions rather than member states.

“The government is frozen out of the markets because our debt is too high and the prospects for growth are low.

“The government must heed today’s warnings from the IMF. Austerity and bank bailouts are making the economic crisis problems worse. We need to start investing in job creation to simulate growth. Otherwise we will remain frozen out of the markets and will have to go once again, cap in hand, to the EU for a second bailout.” ENDS

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