Government fury over Budget leak

It has been revealed that EU officials have leaked details of Ireland’s budget plans to the German parliament, before Irish TDs had a chance to see anything. Irish Taoiseach, Enda Kenny, was left embarrassed and furious when this came to light. When he was asked how, exactly, this important document found it’s way to the German parliament, the Taoiseach simply said “I have no idea”. But it has been revealed that government sources are laying the blame at the feet of the European Commission, as they passed on a document to the German parliament, stating that the VAT rates would be raised by 2pc.

The document, which was presented to the German government states that the Irish government have “decided to focus on indirect tax increases to deliver the bulk of the €16bn additional tax effort required in 2012.

“To this end, the VAT rate is being raised by two percentage points to 23pc, which wil generate €0.67bn.”

This increase would raise €670m in taxes. However, this move has been criticised by consumer lobby groups, who have pointed out that the rise would cause an increase in household bills, and most families would spend less than they have previously spent on other goods.

While the government have vehemently denied that this document contained any budget plans, government sources report that there has been a lot of anger over the fact that the document was given to another country’s parliament.

There has already been a public outcry over the fact that this informatiuon was leaked to Germany, Dermot Jewell, of the Consumer’s Association said that “it beggars belief that the German parliament is told about this before the Dail”.

Finance spokesman for Fianna Fail, Michael McGrath said “if this proves to be true, it would be a staggering and unprecented breach of faith with the Irish people and Irish parliament.

The government has denied that any budget plans were in the document. They are insisting that no decisions were made yet.

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