The revised bailout terms agreed in Brussels will mean nothing unless the Government uses the opportunity to promote economic growth and jobs according to president of Siptu Jack O’Connor.
Mr O’Connor said the benefit of the reduction would be wasted if the Government continued with a projected €3.6 billion reduction in the Budget 2012 without "offsetting measures".
He said the revised bailout terms offer the opportunity of scaling down the measures projected for Budget 2012.
"We are approaching the tipping point of no return, if we are not already over the brink, with cutbacks over the past three years on a scale unprecedented in any developed economy."
"Yesterday’s announcement is good enough, as far as it goes, although it would be better if the facility to buy back debt at discounted rates were extended to Ireland," said Mr O’Connor.
He said: "The Minister for Finance must obtain agreement from the private pension funds to invest five per cent of their assets, ie €4 billion, in job generating projects and enterprise in Ireland, on the basis of exemptions from the recently announced pensions levy.
"Together with investing the residue of the National Pension Reserve Fund, that is €5 billion, this would generate upwards of 80,000 jobs.
"The Government must grasp the opportunity to reverse the downward direction ofthings, instilling hope in our people - otherwise yesterday’s announcement will ultimately serve only to exacerbate frustration and despair."
Irish Mep Marian Harkin said depending on the final details the new deal could mean a saving of between 250 and 850 million Euro per year.
But she warned that While "this is a hugely significant sum of money", it would only reduce interest payments from €10billion per year to about €9.4 billion, "so our debt burden still remains extraordinarily high".
"We need to look very carefully at the price we pay, the North & West MEP cautioned. "A commitment to engage constructively in the discussions on a Common Consolidated tax Base and legally binding national fiscal frameworks are a clear first step on the road to fiscal union," she said.
