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Economic situation worst in a century - Cowen

Brian Cowen - 'Government needs allies'
Brian Cowen - 'Government needs allies'

Taoseach Brian Cowen said today he wants to make it absolutely clear that we are battling the most severe global economic and financial conditions for 100 years, and that government cutbacks cannot be avoided.

Mr Cowen said that we have to change the economic paradigm and policies, but that this cannot be done if people oppose every cut that is proposed.

The Taoiseach said that the Government needs allies in dealing with the situation and communicating the changed circumstances to the public.

He said that the business sector, trade unions, and the social partners need to stand up now and tell people what the situation is.

Mr Cowen said that 10% of government spending this year has to be borrowed and that this is not sustainable.