Economics Report.On Wednesday,Ireland's Prime MinisterBrian Cowen announced measuresto cut the biggest budget deficitin Europe.BRIAN COWEN: "Today we've come toannounce a four-year plan,between now and 2014.It's to bring certaintyfor our people.It's to ensure they havehope for the future."The plan aims to cut spendingand raise taxesby twenty billion dollars.These austerity measuresare a step toward getting aidfrom the European Unionand the International Monetary Fund.But Mr. Cowen's governmentcould fall before next year'sbudget is passed.The government askedfor help Sunday after weeksof saying it did not need any.The EU and the IMF are expectedto provide about one hundredfifteen billion dollars-- or about half of Ireland's economy.Ireland got into troubleby guaranteeing the debts of its banksduring the world financial crisistwo years ago.That promise has now costover sixty billion dollars.Roisin O'Sullivanis an economics professorat Smith College in Massachusettsand a former economistat the Central Bank of Ireland.ROISIN O'SULLIVAN: "What was differentabout the Irish approach was thatall deposits were guaranteedand bondholders, investorsthat had bought bonds in these banks,also received the government guarantee.This was a more extensive bailoutthan most countries pursued."Professor O'Sullivan saysIrish bankers and banking supervisorshad too close of a relationship.Ireland was known as the "Celtic Tiger"in the nineteen nineties.Its educated, English-speaking workersand low taxes appealedto foreign companies.Its economy grew quickly.But foreign investmentand low interest ratesinflated a property bubble,raising prices to levelsthat could not be supported.Bad property loans hit hardat Ireland's main banks.Unemployment is over thirteen percent.Ireland's bank bailout and governmentspending have expanded this year'sdeficit to more than thirty percentof gross domestic product.This is ten times the EU limitfor a deficit in relationto the size of an economy,as measured by GDP.But John James at Pace Universityin New York state saysthere is little the European Union can do.Germany and France want togive the European Commissionmore power over national budgets.For now, rescues by the EuropeanCentral Bank and other lendersare the only answer in a debt crisis.EU officials want to completethe Irish aid plan quickly.They want to be ready in caseof more bad news from economieslike Greece, Portugal and Spain.And that's the VOA Special EnglishEconomics Report,written by Mario Ritter.