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| Irish Republic faces tough budget | |
| (about 7 hours later) | |
| The Irish government is due to unveil one of the most severe budgets in the Republic's history. | The Irish government is due to unveil one of the most severe budgets in the Republic's history. |
| It said it needs to make immediate savings of 4bn euros (£3.6bn; $6bn) to stabilise the economy after it fell into deep recession. | It said it needs to make immediate savings of 4bn euros (£3.6bn; $6bn) to stabilise the economy after it fell into deep recession. |
| The government has said social welfare and capital expenditure will be cut. | The government has said social welfare and capital expenditure will be cut. |
| The budget comes amid threats of industrial action by public sector workers who could face pay cuts of up to 6%. | The budget comes amid threats of industrial action by public sector workers who could face pay cuts of up to 6%. |
| Even members of the police force said they were considering becoming involved, after government talks with union leaders collapsed on Friday. | Even members of the police force said they were considering becoming involved, after government talks with union leaders collapsed on Friday. |
| PM pay cut | PM pay cut |
| Irish finance minister Brian Lenihan said severe measures were needed to prevent debt growing from almost 12% of GDP - already four times the level allowed by the European Union - to 14%. | Irish finance minister Brian Lenihan said severe measures were needed to prevent debt growing from almost 12% of GDP - already four times the level allowed by the European Union - to 14%. |
| It is thought salaries of the highest-paid public sector employees could be reduced by up to 20%. | It is thought salaries of the highest-paid public sector employees could be reduced by up to 20%. |
| One of those facing such a cut is Taoiseach Brian Cowen; the prime minister's pay will drop to 228,466 euros. | |
| But that is unlikely to appease the trade unions, says the BBC's Ireland correspondent Mark Simpson. | But that is unlikely to appease the trade unions, says the BBC's Ireland correspondent Mark Simpson. |
| Since the collapse of the Celtic Tiger economy, the unions believe too much help has been given to Irish banks and not enough to Irish workers, he adds. | Since the collapse of the Celtic Tiger economy, the unions believe too much help has been given to Irish banks and not enough to Irish workers, he adds. |
| It is expected social welfare payments will be cut by about 4% and child benefits by about 9%, as well as a reduction in payments to the unemployed under 23. Old age pensions are the only area to be unaffected. | It is expected social welfare payments will be cut by about 4% and child benefits by about 9%, as well as a reduction in payments to the unemployed under 23. Old age pensions are the only area to be unaffected. |
| It is Mr Lenihan's second budget this year after he was forced in April to announce an emergency budget to deal with the Irish Republic's rapidly contracting economy. | |
| It included a large rise in taxes and a cut in spending, as well as the creation of the National Asset Management Agency to take over banks' bad assets to try to restore lending. | It included a large rise in taxes and a cut in spending, as well as the creation of the National Asset Management Agency to take over banks' bad assets to try to restore lending. |
| Union proposals to achieve savings through unpaid leave have been rejected by the Irish government, which said it would proceed with its own plans to cut 1.3bn euros off the public sector pay bill. | Union proposals to achieve savings through unpaid leave have been rejected by the Irish government, which said it would proceed with its own plans to cut 1.3bn euros off the public sector pay bill. |