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TAOISEACH BRIAN Cowen has expressed understanding about people’s anger at falling living standards ahead of today’s Irish Congress of Trade Unions day of action, but insisted protests would not resolve the country’s economic problems. Speaking in Dublin Castle yesterday at the European Foundation Forum on Europe’s response to the global recession, Mr Cowen said a cut of €1.3 billion in the public sector pay and pensions bill would have to be implemented in the budget.

“Put simply, we are now spending more than we earn. Our tax revenues have fallen sharply back to 2003 levels. This means that we will have a deficit in the region of €22 billion in our public finances. To bridge this gap we are borrowing over €400 million every single week. Clearly, this cannot continue.”