Fine Gael is accusing the Government of abandoning commitments in the National Development Plan because of the slowdown in the economy.
The claim follows remarks by the Taoiseach today, when he told the Dáil that the plan depends on the economy's growing by at least 4% each year.
With the latest projections for growth well below that, Fine Gael said Mr Cowen's comments marked a significant change. But a Government spokesman claimed there had been no change in policy.
Mr Cowen's remarks came as a report this morning from stockbroker Davy said economic growth next year would fall to 2% and may not bounce back to normal levels of growth until 2010.
The Taoiseach was answering questions from Enda Kenny on the roll-out of the technology programme for schools. The Fine Gael leader claimed Mr Cowen's comments about the NDP represented the first admission that the plan was not secure.
But Mr Cowen told TDs that while the Government would prioritise spending in productive areas, including education, the international economic environment and the country's commitment to keeping to the terms of the EU Stability and Growth pact could not be ignored.
Meanwhile, Fine Gael has proposed a one-point cut in the 13.5% VAT rate in an initiative which the party says will help lower prices, reduce costs to business and help to get the economy back on track.
Fine Gael says the cut would be funded through a windfall levy on electricity generating companies. The party says generators stand to make €300m a year from extra charges to pay for carbon allowances even though these have been allocated free of charge by the Government for the next four years.
Davy cuts growth forecast
The report from Davy this morning suggested that unemployment would rise to 7% next year and that the Government would miss its tax targets by €3 billion in 2008.
Davy says it has cut its growth forecast for the Irish economy because conditions continue to get worse for consumers. As the labour market weakens, people are finding it harder to get credit.
Davy now expects GNP growth of 1% this year, and growth of 2% for 2009, down sharply from a previous forecast of 3.4%.
On housing, Davy does not think 2008 will see building bottom out, and it has hugely reduced the number of house completions it expects to see next year from 40,000 to 25,000.
It says that this year, because of the property slowdown, the Government will miss its tax targets by €3 billion.
The stockbrokers also say that unemployment will have reached 7% by the end of next year from a current level of 5.5%.
