Taoiseach Brian Cowen has painted a grim picture of the issues facing the country during the current economic crisis.
Speaking on the Gerry Ryan Show on RTÉ 2FM, Mr Cowen said: 'We are now going to face into a few years where the standard of living will drop. We have a problem. It is a serious problem. Unemployment will go up in the short term, that's for sure.'
Mr Cowen said that we have seen a 'fundamental fracture' of the worldwide financial system.
However, he said that if we do the right things now we can get back to our previous position reasonably quickly.
He said that, to that end, the social partnership model is the right model, a problem-solving model.
He added that the rate of deterioration from this time last year is a turn-around that we have not seen in Irish economic history.
