Wages, welfare to suffer for loan of up to €90bn

DEEP cuts to the minimum wage and welfare benefits loom as part of the price the country pays for its huge emergency bailout loan as Brian Cowen insisted he was “not the bogeyman” who had led Ireland to financial crisis.

After a week of denial, the cabinet formally applied for EU/IMF rescue aid in the region of €80bn-€90bn as Finance Minister Brian Lenihan admitted the country had lost control of the banking crisis.

The Government’s shambolic performance in the lead-up to the bailout heightened speculation Mr Cowen would face a heave as Fianna Fáil slipped to an all-time low of 17% in a Red C opinion poll.