Cowen accused of 'strangling the next generation'

IRELAND WOULD not be immune from recapitalisations in other EU countries, Taoiseach Brian Cowen told the Dáil when defending the Government’s banking policy.

“Trillions of euro are being placed under guarantee simply because the international financial system practically collapsed,” he said. “Capital had been wiped out and we need to put the banking system back into place.”

Mr Cowen was responding to Opposition leaders’ questions in advance of Minister for Finance Brian Lenihan’s statement to the House.

Fine Gael leader Enda Kenny accused the Taoiseach of “strangling the next generation and tying the hands of future governments”. He was imposing a levy of €27,000 on every family.

“This is because of the debts run up by Mr Seán FitzPatrick and his management group in Anglo Irish Bank,” Mr Kenny added.

Mr Cowen said Mr Kenny was refusing to say that the Fine Gael policy on Anglo Irish Bank would cost more than €65 billion, which would have to be repaid immediately to depositors and other providers of funding at the ECB.

Labour leader Eamon Gilmore said when the Taoiseach announced the establishment of Nama he had said that the haircut would be 30 per cent.

“As it is now after 4.30pm I am not breaking an embargo when I say that the Financial Regulator and the governor of the Central Bank advised Deputy Burton and I earlier today that the average haircut would be 47 per cent,” he added.

Mr Gilmore said: “It is the day that crystallises more than a decade of mismanagement of our economy and bad government by Fianna Fáil.”