Pressure mounts as Cowen denies clinging to power

Taoiseach Brian Cowen tonight denied he was clinging to power as the Opposition directly demanded he bring forward next month’s Budget.

Under enormous pressure from within the parliament and his own party to resign, a subdued Mr Cowen dismissed calls to revise a timetable to strike a deal on the €90bn bailout from the International Monetary Fund (IMF) and Europe.

“There is no question, the characterisation of clinging to office, being my motivation. That is not my motivation,” the Taoiseach told the Dáil.

“My sole motivation is to ensure that the four-year plan is published, as agreed with the people with whom we are dealing, and that a budget is passed by the House, put to the House.”

The four-year plan setting out €15bn savings will be published tomorrow afternoon.

Budget 2011 is due on December 7 and, along with the 2014 roadmap, the documents are expected to pave the way for social welfare cuts, reductions in the €8.65 minimum wage and new or increased taxes.

Mr Cowen said the timeline has been agreed with European Commissioner Olli Rehn, who suggested earlier he wanted to see the detail of the recovery policies sooner rather than later.

“My sole motivation is to ensure that a four-year plan is published... and that a budget is passed by this House,” the Taoiseach said.

The legalities of passing the Budget mean that the new year general election which Mr Cowen has agreed to could be pushed back as far as late February or March.

Meanwhile talks between Ireland and the IMF on a bailout are said to be moving forward quickly and progressing quite well.

However IMF First Deputy managing director John Lipsky said it is up to the Goverment to make the necessary political decisions.

Mr Lipsky said he wouldn't like to "speculate" about the impact of the political turbulence on the prospects of a rescue.

Mr Cowen was to attend a meeting of the Fianna Fáil parliamentary party following his Dáil appearance.

The gathering was being billed by one backbencher earlier today as a "bare knuckle" affair, with the Taoiseach expected to hear calls for him to resign as party leader.

Five Fianna Fáil rebels have already commented publicly that they believe Mr Cowen should go, however 18 would be needed to proceed with a motion of no confidence in the leader.