Ireland is to roll out a new financial assistance scheme to tackle the “financialization” of the economy and create a “more fair” financial system, the finance minister has announced.
A new “affordability and sustainability” framework for financial services is expected to be implemented by early 2018, according to a draft of a financial assistance strategy released by the finance ministry.
The government wants to establish a system of financial support for people and businesses through the “affordable and sustainable” financial assistance framework, which would also help to encourage investment and promote sustainable businesses.
Financial support will be available for individuals, small businesses and individuals with disabilities and their families, it said.
It will be provided on a “sustainable footing” and it will be made available through a single payment, it added.
It is hoped that the scheme will help to reduce the burden of tax and increase the number of people accessing financial assistance.
This is the first time a government has announced a scheme for financial assistance, and was welcomed by the Irish Chambers of Commerce and Industry (ICCI), which represents the financial services industry.
The Government is committed to improving the financial wellbeing of Ireland, it was announced in a statement on Wednesday.
The Irish Chambers said the new scheme will be “a catalyst for a more inclusive, inclusive and resilient economy” and will help ensure that “people, businesses and the economy continue to thrive”.
“The financial services sector has been one of the most vulnerable sectors to the global financial crisis and its effects, but this new financial support scheme will provide an important contribution to that effort,” said David McIlroy, president of the Irish Chamber of Commerce.
“The Irish government has a long history of supporting the Irish economy, and we look forward to supporting our industry as we look to the next stage of economic development.”
The new scheme is the latest move by the government to tackle financial inequality and inequality of opportunity, a new report by the Institute for Fiscal Studies (IFS) said.
The report said Ireland has the fourth highest proportion of people living below the poverty line in the EU and has the third highest rate of inequality of wealth among developed economies.
It said that the majority of Ireland’s population lives in poverty and that the Irish population was more likely to be unemployed, live in temporary accommodation and live in social housing than their peers in the UK.
The IFS also found that more than half of Irish adults were in low-paid work and more than three-quarters of people in Ireland live below the national poverty line.
Irish Prime Minister Leo Varadkar has also announced plans to introduce a national minimum wage and a universal basic income for all adults, as well as extending the universal right to work.