RETAILERS EYE BUDGET WITH CAUTION - Today sees the first instalment of the National Recovery Plan - a €6 billion package of 'adjustments', agreed between the EU, the International Monetary Fund and the Government. With tax increases and welfare cuts ahead for the next few years it is going to leave less money in consumers' pockets.
Isaac Jackman owns the C&D Shoe repair businesses on Charlemont Street in Dublin city centre, and also has shops in Sandymount and Donnybrook villages. He says that when money is taken out of people's pockets, they are pushed to their limits further. He says this is evident by the fact that people come into him with their shoes in a worse condition as they try to get the longest possible time out of them. He predicts this will be a 'bad' Budget for both consumers and retailers.
Ronan Rice is a pharmacist at Cahill's Pharmacy on Camden Street. He says that consumers are spending less and are very fearful about the future. He says people are scared about losing their medical cards and some people may be skipping on some medication because they simply can not afford it. Older people are especially affected, he adds. Mr Rice says he does not believe the economy will grow as much as the Government is predicting.
Frank Goodwin owns a high-end interior design shop, Inreda, on Lower Camden Street. He says he wants a clear picture from Government of what is ahead in coming years as this will bring certainty to people. He says that people are worried about life in general and that while the four-year plan did point the way forward, today's Budget will provide more details. He adds that while there is a lot of gloom and doom around, he is optimistic that the only way for the country is up.
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MORNING BRIEFS - Aer Lingus has said its passenger numbers in November fell by 15.9% to 653,000 compared to a figure of 776,000 the same time last year. The airline's capacity was down 13.6% last month compared to November 2009.
*** The idea of a European Debt Agency with the ability to issue euro zone or e-bonds been floated has been shot down by the German government. Germans feel they would pick up the bill as a result of sharing bonds with countries where insurance on debt is expensive, like Ireland, Greece and Portugal. Another idea shot down by Germany's chancellor, Angela Merkel, yesterday, was that the European Union's rescue fund needs to be bigger. Belgian finance minister Didier Reynders, who is also chair of the EU's economic affairs council, has called for the fund to be made bigger. But Klaus Regling, the head of the fund, said last night that the fund has enough lending capacity for any future bail-outs.
*** Today's the day that actor and former footballer Eric Cantona stages his revolution in France. He has been urging people to join him in bringing down the financial system by withdrawing their money from French banks. One bank chief said the suggestion is criminal, while Christine Lagarde, the French finance minister, said Cantona is a great footballer, but she is not sure whether all of his suggestions should be followed.
*** On the currency markets the euro is trading at $1.3327 cents and 84.6 pence sterling.
