FT ranks Lenihan second-worst finance minister

BRIAN LENIHAN has been ranked the second-worst finance minister out of 19 European countries by an expert group of leading economists and analysts.

Mr Lenihan scored low in criteria such as his ability to deal with the global financial crisis, his judgment, his credibility as a politician at home and abroad, and his future leadership potential.

The competition, carried out annually by the Financial Times newspaper, is based on a number of economic indicators, how the markets reacted to his dealings with the financial crisis as well as the assessment of a judging panel of some of Europe’s leading economists.

The newspaper summed up the verdict on Mr Lenihan and Ireland in one sentence: “Divided Europe, pop went the economy”, referring to the rejection of the Lisbon treaty in June and the economic downturn in the months since.

The judges looked at the lucidity of leaders, or their swiftness in reacting to the global financial crisis, their leadership skills “including the role played at a European level” and their effectiveness domestically.

Commenting on the results, the Financial Times said: “Amid the worst conditions for at least a generation, finance ministers had to spot early the scale of the global crisis, avoid misjudgments, remain credible as politicians — at home and abroad — while keeping a grip on public finances as economic growth collapsed around them.”

It said: “Ireland’s Brian Lenihan was rated for his lucidity in the crisis — but a unilateral pledge in September to guarantee the debts and deposits of the largest Irish lenders raised hackles across the continent.”

Mr Lehihan scored better than only Portugal’s finance minister, Fernando Teixeira dos Santos.

The survey of 19 countries, in its third year, was expanded to cover non-eurozone countries such as Britain and Sweden.

On his handling of the economy based on indicators such as tax takes, GDP and labour trends, Mr Lenihan was ranked 18th, or second-last of the 19 Eurozone finance ministers.

On his political credibility, which looked at his leadership skills, the role he played during the financial crisis at a European level and how he is respected as a minister, he ranked 13th out of 19.

On a “stability test” of how he dealt with the financial crisis and how effective his Government’s measures were, Mr Lenihan scored 14th of 19th. This brought his overall ranking to 18th out of 19th.

Speaking in the Seanad on the survey, Fine Gael senator Eugene Regan said: “That is very bad for this Government and for this economy.

“It does not give us confidence that either the Taoiseach or the Minister for Finance can devise a strategy to take us out of the current economic difficulties.”

Finland’s Jyrki Katainen — the youngest of the finance ministers at 37 — was ranked highest.