For many finance ministers around the world, a budget just isn’t a budget these days if it doesn’t contain some all-important “fiscal stimulus.” But not everyone is hip to the trend: Ireland and Poland, for example, are cutting costs in response the economic crisis rather than ramping them up. On Tuesday, Ireland announced it was slashing over $3 billion in government spending from its budget and Poland said it would shave nearly $7 billion from its budget. Both governments have cited the need to support their credit ratings as a reason for the cuts, especially given that the U.S. and other Western countries have begun flooding the market with sovereign debt.
We say stimulus, they say cutbacks
Ireland and Poland aren't buying the economic stimulus sales pitch
FILED UNDER: Business