Cowen attends EU summit on economic crisis

Taoiseach Brian Cowen today met other EU leaders at an emergency summit in Brussels today to discuss the current economic situation and the Union's response to it.

The meeting was called by Czech Prime Minister Mirek Topolanek, whose country holds the rotating EU presidency, in response to the international financial crisis.

Discussions focused on the functioning of the financial sector, the European Economic Recovery Plan, how to best stimulate employment, and preparations for the forthcoming Spring European Council which take place on March 19th and 20th.

French President Nicolas Sarkozy said today European Union leaders should put off choosing the chief of the executive commission from June until after an October referendum on the bloc's new treaty in Ireland.

Speaking after an EU summit, Mr Sarkozy reiterated his support for Jose Manuel Barroso, a former Portuguese prime minister widely expected to seek a second five-year term to lead the European Commission, which proposes EU-wide legislation.

"It would be better that the Irish vote first before deciding [on the new Commission chief]," Mr Sarkozy told a news conference, adding the move would show respect for Irish voters.

EU leaders should normally pick a new Commission president at their regular summit in June. Ireland is to vote, mostly likely in October, on the EU's Lisbon treaty, which overhauls the bloc's institutions, in a repeat referendum after rejecting the charter last year.

EU leaders are keen on securing a 'yes' in Ireland this time as another negative vote would leave the bloc with the current treaty, which many consider unwieldy. The overwhelming majority of the EU's 27 countries have ratified the treaty, but Ireland is obliged by law to vote on it in a referendum.

Speaking ahead of today's gathering, Mr Topolanek, the Czech PM, said that Europe will only overcome the current crisis if it acts together in a co-ordinated way and if it abides by European community rules.

"We do not want any new dividing lines; we do not want a Europe divided along a North-South or an East-West line; pursuing a beggar-thy-neighbour policy is unacceptable. That the internal market remains united is of vital importance," said Mr Topolanek.

Earlier today, Mr Cowen said he would press on despite opinion polls showing growing public discontent with the Government's handling of the economy and a string of banking scandals.

A poll published today showed support for Fianna Fáil had slumped to a record low of 23 per cent, down from 28 per cent in January.

"I am not dispirited by it," Mr Cowen told RTÉ. "I take on board that is a public view at the moment. You can't do your job or run the country on the basis of what you think would be the next opinion poll."

The poll showed support for the Fine Gael opposition party was at 30 per cent from 33 per cent in January, while those in favour of Labour had risen to 22 per cent from 14 per cent in the previous survey.

Opinion polls in recent weeks have shown Mr Cowen's personal ratings were also at new lows.

Asked if he would lead his party to the next election, the Taoiseach said: "That is my hope and intention and that is what I am committed to doing. "I am far more preoccupied with doing the business that's at hand. This country is fighting for its economic survival."

Public anger has grown at public spending cuts of €2 billion to plug a massive hole in public finances, which has led to growing demonstrations.

Mr Cowen said: "You earn the respect of your electorate when you are prepared to make decisions which are necessary in the common good."

Last night, in his leader's address to the Fianna Fáil ardfheis, Mr Cowen promised major changes to banking regulation, including the merger of the Central Bank and Financial Regulator, would be announced by the Government within weeks to "bring an end to a sorry chapter in Irish life".

Additional reporting: Reuters