New development: Public sector pay and pensions in Ireland and the financial crisis

Public sector pay and pensions have been subject to large cuts in Ireland, and at the same time net pay has been reduced by increased tax and other charges. The main reason is the economic and fiscal crisis, and an agreed EU/IMF programme of expenditure cuts, tax rises, and loans. In addition, there has been widespread media criticism of excess public sector pay and pensions. This article examines the evidence, and describes the main cuts and their rationale.