The outcome of tomorrow's Cabinet meeting, in terms of reviewing and refining economic and social policy, may decide the electoral prospects of the Government. Already, so many half-promises concerning tax cuts and additional spending have been made by Fine Gael and Labour politicians that public expectations are running far ahead of the economy's ability to deliver. Unless a modicum of realism is injected into the situation, both parties will suffer.
A restoration of trust in politics was amongst the six priorities agreed last July by Taoiseach Enda Kenny and Tánaiste Joan Burton. They now have an opportunity to do something about it. The Government performed well in crisis management mode and in extricating the State from the terms of the EU/IMF bailout. Then, assailed by domestic controversies and internal squabbles, it lost focus and reverted to traditional-style, auction politics. That should change. A clear joint statement, setting out economic realities and priorities in terms of future job creation, social spending and funding for capital development would help.
The economy is performing better than expected and Exchequer revenues have risen. These welcome developments should not, however, obscure the fact that a significant gap remains between Government income and public expenditure that will have to be closed. An unstable global economy and slowing job creation points to the need for continuing caution rather than excessive exuberance. Drafting a Budget for 2015 that will keep within established targets has been made more difficult because of deliberate party posturing concerning tax reductions and additional spending. Such promises will stand in stark relief to the introduction of water charges next year.
Job creation, housing availability and improved living standards are the most obvious and understandable public demands at this time, following six years of hardship and recession. But excessive political indulgence contributed to the crash in the first place. Ministers should learn from that lesson and proceed with caution.
