Ireland's minimum wage and the salary of Prime Minister Brian Cowen were amongst cuts voted through by parliament on Friday in an emergency law that forms part of the budget for the indebted eurozone state. The "financial emergency measures in the public interest" bill, part of the austerity measures in budget 2011, was passed by 79 to 74 votes in the Dail (lower house of parliament).
The law now goes to the Senate, Ireland's upper house. Finance Minister Brian Lenihan, who delivered his six-billion-euro (7.9-billion-dollar) budget statement on Tuesday, said the three measures in the emergency legislation were "essential" to Ireland's recovery. He said they were part of the budget and the government's 15-billion-euro four-year plan to "put the public finances in order" and secure sustainable export-led growth in the economy. The implementation of the budget and the four-year plan are pre-conditions for a recently agreed EU-IMF bailout for Ireland.
The legislation will cut the minimum wage by one euro to 7.65 euros in a move that affects about 52,000 people. It also reduces government salaries and cuts the pensions of retired public servants, with those on pensions of over 60,000 euros most affected with a cut of 12 percent. Labour party spokesman Joe Costello said they were "slash and burn" cuts.