Lenihan ‘delusional’ over economy

FINANCE Minister Brian Lenihan was accused of being “dangerously in denial”, after claiming the economy has stabilised, as the international press warned of a “much deeper depression” if the Government’s banking policy does not change.

Mr Lenihan said the country is “at the bottom of a very difficult recession but the early, tentative signs of growth are there and that will continue and resume.”

The Labour Party said he was “delusional” and there was “no sign of recovery” in August’s Exchequer figures, published yesterday. They showed the Government spent €12.1 billion more than it collected in tax in the first eight months of this year. This deficit was lower than the €18.7bn reported this time last year.