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IMF CHIEF URGES YES TO TREATY.

Byline: SARAH BARDON

VOTING Yes for the fiscal stability treaty will not mean permanent pain for taxpayers, it was claimed yesterday.

IMF deputy divisional chief Xavier Debrun said once the Government balanced the budgets, harsh cuts and tax hikes would not be necessary.

He added Ireland passing the fiscal treaty would improve our chances of returning to the international markets to borrow. Mr Debrun said: "Fiscal rules are about fiscal responsibility, the fact that over the long-term governments make sure that on average they can pay for the policy measures they implement. This is just common sense.

"This is called the budget constraint - you are subjected to it, I am subjected to it, the Government is subjected to it."

Speaking in Brussels, Mr Debrun said austerity was caused by governments ignoring the budget constraint and then being faced with fiscal shocks which required belt-tightening.

He added: "Once you're back to a situation which is broadly balanced you apply the basic principle, I need to pay for what I spend in the long-term."

Meanwhile, after Tanaiste Eamon Gilmore urged workers to say Yes Fianna Fail leader Micheal Martin said he was "surprised" by the decision of the unions to go against the Labour Party.
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Publication:The Mirror (London, England)
Date:Apr 25, 2012
Words:203
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