Ireland vows austerity but plan draws scepticism

Ireland promised on Wednesday to cut spending and raise taxes to combat its banking crisis and secure an international bailout, but drew accusations of overconfidence in assuming the crippled economy can grow.
As tempers flared across Europe over the financial and social cost of rescuing Ireland, German Chancellor Angela Merkel said politicians must show financial markets who is in charge and make investors share in the risk of future debt crises.

Irish Prime Minister Brian Cowen, whose government is close to collapse, unveiled a 15 billion euro $20 billion (12.7 billion pound) four-year austerity plan that he said would affect all Irish people.

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