Sign up to The Irish Times Archive (1859 - 2008)My Account »

THE LAST thing a busy Taoiseach engaged on an important trade mission abroad needs is to have to deny remarks that he never made at home when they are wrong and deeply damaging for Ireland and the euro. In Tokyo yesterday, Mr Cowen, through no fault of his own, found himself in that embarrassing position. He had to reject an inaccurate report which claimed that during last week’s talks with the social partners, he had said the International Monetary Fund could be called in if economic conditions deteriorated. His alleged remarks were picked up by other media outlets and by currency traders on financial markets. The result was a fall in the value of the euro against the dollar.

The euro stabilised after Mr Cowen’s emphatic denial was followed by the confirmation by Dan Murphy, general secretary of the Public Service Executive Union, that the IMF was never mentioned in discussions with the social partners. IMF involvement was something that he, Mr Murphy, felt could happen. It was merely his opinion.