Cowen acknowledges recession and warns of painful budget

TAOISEACH Brian Cowen finally admitted Ireland was in the grip of recession last night as he signalled an economic upturn could be years away.

Mr Cowen warned of a “painful” emergency budget ahead as the tax base had “deteriorated significantly” during the country’s rapid financial slump.

The Taoiseach insisted a national pay award was crucial to Ireland’s recovery and refused to rule out large-scale job cuts in the public services.