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Irish Prime Minister Enda Kenny to make televised address later Irish Prime Minister Enda Kenny outlines spending cuts
(about 14 hours later)
Ireland's prime minister, Enda Kenny, will make a televised address to the Irish people later to prepare them for the country's next budget. Public spending in the Irish Republic will be cut by 2.2bn euros (£1.9bn) a year and taxes raised by 1.5bn euros, Prime Minister Enda Kenny has warned.
The Irish Republic required an international bail-out last year. Mr Kenny made a televised address to the Irish people ahead of the unveiling of his government's budget for 2012.
It is now trying to save 3.8bn euro (£3.2bn) in a new round of cost-cutting measures. Mr Kenny said the country's outgoings were currently 16bn euros a year more than it was receiving.
The Irish government is expected to introduce more tax rises and spending cuts in a budget announcement later in the week. He said steps to recover from the Irish economic crisis had been taken since last year but the crisis remained.
On Sunday night, Mr Kenny will use a live speech on prime-time television to appeal for understanding. The Irish Republic is trying to save 3.8bn euros in a new round of cost-cutting measures. The country required an international bailout last year.
He will warn the Irish people that the country's weak finances require a tough budget and that more cost-cutting is needed next year too. Fragile economy
Mr Kenny said on Saturday that the country "was in the region of 18bn euros out of line". Mr Kenny said income tax would be untouched but indirect taxes would be raised, on what he said was the start of a four-year path to recovery.
The Irish economy remained fragile but job creation would be at the centre of the recovery, he added.
"This budget will be tough. It has to be tough," Mr Kenny warned in his address.
Mr Kenny told the Irish public they were not to blame for the economic collapse.
"Let me say this to you, you are not responsible for this crisis," he said.
"My government is determined that now the necessary decision and challenges are made to ensure that this is never allowed to happen again."
The proposals are due to be outlined in the Irish parliament, starting on Monday.
They are expected to include an increase in vehicle tax, cuts in some welfare entitlements and a rise in VAT to 23%.
'Exceptional event'
The Irish prime minister said: "Right now the state is spending 16 billion a year more than it is taking in. This problem will not be fixed unless we take action to bridge this gap. This can only be done by us, ourselves, working together."
Mr Kenny said he chose to address the Irish people directly because of the crisis the nation was facing.
"I know this is an exceptional event. But we live in exceptional times. And we face an exceptional challenge," he said.
The Irish proposals come as Italy's new government adopted a package of emergency austerity measures aimed at fending off bankruptcy and saving the euro from collapse.
Taxes on the assets of the wealthy will go up, as will pension ages, and there will be a major drive to tackle tax evasion.
Italian Prime Minister Mario Monti said the measures were necessary to "save Italy", and announced he would give up his own salary as part of the effort.
The plans must still be approved by the Italian parliament.