Budgetary plan: Cowen's letter in full

Taoiseach Brian Cowen's letter to Fine Gael leader Enda Kenny regarding engagement with the budgetary process

Taoiseach Brian Cowen's letter to Fine Gael leader Enda Kenny regarding engagement with the budgetary process

Mr Enda Kenny TD

Leader of Fine Gael

Dáil Éireann

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Dublin 2

Dear Enda,

Further to my exchanges with you during Leaders’ Questions in Dáil Éireann yesterday, I want to reiterate my position on the desirability of having a constructive engagement with the Opposition parties on a four-year budgetary plan which must be finalised with the European Commission by mid-November.

As you are aware, we face an extremely challenging time. Our people understand that this is not a time for business as usual, either in politics or in the economy.

We need to be very clear about the choices that we face. We need to make decisions which, even when they are unpalatable, are clearly in the interests of the country and of our people.

I greatly welcome the fact that the main Opposition parties accept the Government’s target of achieving a fiscal deficit below 3 per cent by the end of 2014. This is absolutely essential not only to achieve stability, but to enable us to convince lenders and investors that our funding needs now, and over the four years ahead, can be met with confidence.

While the Government has the constitutional responsibility to propose the fiscal strategy and the budgetary measures that are necessary, it does not have a monopoly on wisdom. We are at a point where every sensible and viable proposal needs to be heard and considered. It was in that spirit that I proposed that the Opposition parties should be afforded comprehensive access to information, analysis and costing by the officials of the Department of Finance. I very much welcome the fact that your party has taken up that offer and that these briefings will take place shortly.

The people of this country are mature and responsible. They expect our political system to reflect that seriousness of purpose in the current circumstances. Therefore, notwithstanding the major political differences between us, I believe that the pursuit of the national interest and the common good must have priority at this time. That is why, following the briefings of the Opposition by the Department of Finance, I would like to meet with you, as proposed by my colleague, Minister [John] Gormley, to confirm, in the first instance, that we share the objective of putting the public finances back on a sustainable footing by 2014.

That, I believe, would send a strong signal to our European Union colleagues and the international markets that the main political parties here are at one in their determination to achieve that objective and do so in line with the commitments that this Government has made in the context of our membership of the euro zone.

I would also propose that we explore the extent to which cross-party consensus could be achieved on a realistic approach to putting the public finances on a sustainable footing by 2014.

I will ask my Private Secretary to contact your office shortly to make the necessary arrangements.

Yours sincerely,

Brian Cowen TD,

Taoiseach