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Four Year Plan

We're halfway through corrections since 2008, says Cowen

Taoiseach discusses the government’s four year plan, and dismisses Fianna Fáil TD Sean Power’s claims he will step down before next general election.

BRIAN COWEN HAS DESCRIBED Ireland’s progress in tackling the financial crisis via fiscal ‘corrections’ as being at a halfway point since 2008.

Speaking to RTÉ’s Six One News, Cowen said that the next four budgets would progressively increase tax and cut spending.

He described the “basic idea” behind the government’s four year economic plan as increasing tax intake from its current 2003-levels to 2006 levels.

Cowen said “We have to find a sustainable way forward” for the economy, and Ireland will still maintain some of the gains we made during the boom years, but not all of them.

He added that the government believes €6bn  is the Budget adjustment involved for next year.

The Taoiseach continued that there was a three-pronged approach to tackle the financial crisis, including the four year plan, the Budget, and getting the the banks sorted.

He would not suggest an interest rate which could be imposed on Ireland as part of the IMF bailout conditions, saying the negotiations are ongoing.

He said “of course” his intention was to lead his party into the next general election, but said the most important thing was to get the Budget passed and to get on with running the country after stablising the banks through an IMF and EU agreement.

Reacting to suggestions his party colleague Sean Power said Cowen had told him he would not lead the party into another election, Cowen said he wouldn’t “divest” his position at the time when the government needs to get on with making serious decisions regarding the future of the country.

Listen to Brian Cowen discuss the four year plan >