Saturday

9th Dec 2023

Irish citizens boycott austerity tax

Almost half of Irish people have refused to pay a household tax imposed as part of promised savings measures, while government pressure to secure the levy risks further angering an austerity-weary public.

By a Saturday (31 March) midnight deadline, around 805,000 of the country's 1.6 million registered households had paid the tax, which has been subject to a high-profile boycott campaign.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

  • Pro-Lisbon-Treaty ad from 2009: Ireland has been the poster-boy of EU anti-crisis efforts up to now (Photo: Conor McCabe/Jason Clarke)

The Irish government agreed to introduce it in 2012 as part of a deal with the EU and the International Monetary Fund - from which it secured an €85 billion loan in 2010.

But it has been unpopular from the very beginning for its across-the-board nature: the same levy is applied both to rich and poor households.

The boycott has been led by nine members of parliament. They compare the campaign to the massive protests in Ireland in the late 19 century against high rents and evictions.

"The Household Tax is linked in the minds of those opposing with the billions being paid from taxpayers' funds to bail out bankers and speculators for bad private gambling debts and with the swingeing austerity being imposed," said a recent statement by the group-of-nine.

Those who do not pay will be fined and risk court action.

For its part, the government has appealed to people's civic and patriotic duty. It has also pledged to spend the €160m raised by the tax on local services.

"I thank them and acknowledge their genuine patriotism to this country at a difficult time," said environment minister Phil Hogan in reference to those who have already paid up.

The authorities are in a difficult position, however. Irish citizens have already been subject to tough austerity measures in the form of €24 billion of tax rises and spending cuts.

Until now the country has been held up as a shining example of how to beat the crisis - imposing the cuts without seeing widespread social unrest.

The test comes as figures released by the country's national statistics office last week show the country is back in recession, with GDP falling by 0.2 percent for the last quarter of 2011, after falling by 1.1% in the previous quarter.

The current debate may also become embroiled in the forthcoming referendum on the fiscal discipline treaty. Ireland is holding a vote on the document on 31 May. Failure to approve the treaty will mean that Ireland will not be allowed to receive funds from the eurozone's forthcoming permanent bail-out fund, the European Stability Mechanism.

Ireland to hold referendum on fiscal compact

The Irish government will hold a referendum on the EU's new fiscal treaty. The pact can still enter into force in other euro-countries if it says No, but Dublin would not be eligible for future bail-outs.

Ireland downgraded to 'junk' in spiralling euro-crisis

US-based credit rating agency Moody's has downgraded to 'junk' status Ireland's capacity to pay back its debt, amid growing concerns about the stability of the eurozone as the crisis reaches Italy and Spain.

Polish truck protest at Ukraine border disrupts war supplies

Disruption at the Polish-Ukrainian border by disaffected Polish truckers is escalating, potentially affecting delivery of military aid to Ukraine. A Polish request to reintroduce permits for Ukrainian drivers has been described as "a shot to the head" during war.

Brussels denies having no 'concern' on Spain's amnesty law

The Spanish government remains secretive about its negotiations with pro-independence Catalans, but claims the EU Commission has "zero concerns" about their proposed amnesty law for Catalan separatists. The EU executive denies that.

Opinion

Tusk's difficult in-tray on Poland's judicial independence

What is obvious is that PiS put in place a set of interlocking safeguards for itself which, even after their political defeat in Poland, will render it very difficult for the new government to restore the rule of law.

Opinion

Can Green Deal survive the 2024 European election?

Six months ahead of the EU elections, knocking an 'elitist' climate agenda is looking like a vote-winner to some. Saving the Green Deal and the EU's climate ambitions starts with listening to Europeans who are struggling to make ends meet.

Latest News

  1. How Moldova is trying to control tuberculosis
  2. Many problems to solve in Dubai — honesty about them is good
  3. Sudanese fleeing violence find no haven in Egypt or EU
  4. How should EU reform the humanitarian aid system?
  5. EU suggests visa-bans on Israeli settlers, following US example
  6. EU ministers prepare for all-night fiscal debate
  7. Spain's Nadia Calviño backed to be EIB's first female chief
  8. Is there hope for the EU and eurozone?

Stakeholders' Highlights

  1. Nordic Council of MinistersJoin the Nordic Food Systems Takeover at COP28
  2. Nordic Council of MinistersHow women and men are affected differently by climate policy
  3. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  4. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  5. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  6. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?

Join EUobserver

Support quality EU news

Join us