The Irish government has announced spending cuts, tax rises and thousands of dismissals from the public sector in its attempts to solve the country's debt crisis.

The four-year plan was announced as talks continue with the IMF and the EU on a bailout package.

Government officials said that 24,750 jobs in the public sector would be cut and spending on social welfare would be reduced by €2.8 billion euros.

The minimum wage will be reduced by €1 to €7.65 per hour and VAT will rise to 22% from the current 21%. Further increases to 23 % and to 24% will take place in 2013 and 2014.

Company tax, however, remains unchanged at 12.5%.

The measures also include a new tax which will see most home owners charged €200 annually.

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