Cowen says Sarkozy 'understands' bank plan

Taoiseach Brian Cowen said he believes French president Nicolas Sarkozy supports the Government’s decision to guarantee the deposits…

Taoiseach Brian Cowen said he believes French president Nicolas Sarkozy supports the Government’s decision to guarantee the deposits and borrowings of six Irish-owned lenders.

Speaking after a meeting with President Sarkozy in Paris the Taoiseach said: "Yes, I think the president understands precisely why the Irish government had to act and the circumstances in which we found ourselves. There is a full understanding of the Irish government's position."

Mr Cowen said the move was and effort to "bring stability in our own system in a way that was available to us".

Commenting on the reaction from the British government Mr Cowen said the stance taken by British prime minister Gordon Brown "obviously would be reflecting some concerns by other banks in Ireland that are not incorporated in the state".

"Every state is responsible for its own bank centre incorporated in their respective state," Mr Cowen said.

Bloomberg