Money Talks: The prospect of €1bn Budget spend consisting of major tax cuts apparently sealed historic Government partnership – TheLiberal.ie – Our News, Your Views

Money Talks: The prospect of €1bn Budget spend consisting of major tax cuts apparently sealed historic Government partnership




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According to various reports the formation of the long anticipated minority Government literally came down to brass tax as it is believed the prospect of a much bigger pot to spend in this October’s budget was an offer neither party could resist.

The announcement which took all of 9 weeks to come came last night when both Fine Gael and Fianna Fail put an end to their bitter rivalry and form a historic Government that might well be remembered for spending big. The new agreement which will see the suspension of the much hated water charges which Fianna Fail fought tooth and nail to get, will also most likely see Enda Kenny remain as Taoiseach as he is widely expected to be re-elected after Michael Martin and his colleagues gave their backing to a Fine Gael-led minority government by abstaining from this Wednesday’s decisive vote.

The new Government will also see a number of high profile Independent TDs adding spice to pot when they take their seats next week. Sources say negotiators at the Fine Gael-Fianna Fáil talks were told last night that the €500 million allocated by Fine Gael for the next budget will in fact be in excess of the original figure, with many claiming it will be closer to double that amount with widespread public spending and significant tax cuts also expected.

It is thought that the lure of delivering a co-ordinated budget that will focus on providing major reforms to key sectors was the major selling point for both parties.

It is widely expected that both parties will sit down and discuss a number of major issues including the future of Irish Water, the current homelessness crisis and introducing major reforms to the country’s ailing health system in the coming months 

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