Cowen insists state sovereignty secure

THERE is “no question of a loss of sovereignty” for the country, according to the Taoiseach, who said Irish people should not feel “ashamed or humiliated” as talks got under way over a possible massive loan for the banks.

As a team from the IMF, EU and ECB arrived for discussions on a financial rescue package, Brian Cowen stuck to the line that Ireland has still not looked for any outside help.

And he dismissed suggestions that he should now resign, having brought the country to its current condition, insisting his Government has taken the right policy decisions all along.

The Taoiseach insisted he did not “speak in riddles” in recent days over whether the country would need financial rescuing and said he was simply trying to ensure the “best possible outcome for the country”.

Mr Cowen’s leadership on the issue was criticised after news that a “very substantial loan” of tens of billions was likely came yesterday morning from the Governor of the Central Bank Patrick Honohan, instead of an elected representative.

But Mr Cowen attempted to distance himself from Mr Honohan, who he suggested had different motives. “The Government’s main interest is in relation to the protection of the taxpayer and the governor has responsibility in relation to financial stability in the state,” he said.

Referring to pressure from the European Central Bank (ECB) for Ireland to take a bailout to ease pressure on its funds from Irish banks, Mr Cowen said: “The Central Bank governor is part of the governing council of the ECB and it has been a matter of public knowledge what the ECB’s general view has been.”

He said: “At the end of the day, we have to determine as a Government what is the best option for our country and our people at this time. That will require further consideration and that’s why these discussions are taking place.”

The Taoiseach said Ireland would make its own decision on taxation issues, despite concerns being expressed elsewhere about threats to our low corporation tax rate.

He said Irish people alone will “determine our future”. Asked about references to those who died in 1916 being let down, he said: “There is no question of loss of sovereignty for Ireland.”

He said the country has shared monetary policy since joining the euro and is now in “technical discussions” on the best way to bring “certainty and confidence” to the currency.

He said: “The work hasn’t been sufficiently completed, nor the options put before the Irish Government in sufficient detail for us to decide what our ultimate position will be. But we are engaged in those discussions in a fully open and constructive way.”

Asked if he understood the shame and humiliation Irish people felt about outside forces dictating our affairs, Mr Cowen said.

“I don’t believe there is reason for people to be in any way ashamed or humiliated at all.

“I don’t understand the premise of the question to be frank.”