The leaders of the four biggest parties in the Dáil met today to discuss the crisis in the public finances but failed to agree a consensus for tackling the State's budget deficit.
The Taoiseach had invited Fine Gael leader Enda Kenny and Labour Party leader Eamon Gilmore to meet him and Green Party leader John Gormley “to confirm the extent of the agreement between parties on the necessary response” in the light of the briefing the parties received from the Department of Finance.
Speaking after the talks, which lasted just over two hours, Brian Cowen said it was never the case that there would be full cross-party agreement over the measures that will be introduced in a four-year austerity plan next month.
However, Mr Cowen welcomed the "unequivocal commitment" from Opposition parties to bringing back the deficit to below an EU limit of 3 per cent of gross domestic product by 2014.
"I don't think it was ever the case that we would have full detailed agreement on all aspects. The fact that we're all on the same page in terms of getting to this 3 per cent deficit by 2014 shouldn't be underestimated," he said on RTÉ television.
Mr Cowen noted although there were political differences, the talks had been "constructive and civilised".
Asked whether an election was needed to give a government a new mandate for a four-year plan, Mr Cowen said he was in a position to undertake that plan, adding he had the "same mandate as any other Taoiseach".
Mr Cowen said he believed an election now "would sow more confusion than clarity at a time when we need to bring forward a coherent four-year plan".
Speaking after the meeting, Mr Kenny said the country required a "recovery plan not just an austerity plan".
The Fine Gael leader said such a plan needed to include a stimulus and growth package focused on job creation "and fundamental reform of the way government operates".
“It remains clear that the only way a mandate can be secured for the implementation of a recovery plan is through a general election. However, in its absence, the Dáil is the place to achieve consensus on the economic challenges facing the country," Mr Kenny said.
Labour's Mr Gilmore told reporters a consensus on the budget was now not going to happen.
Mr Gormley accepted the consensus approach would not be continued. “The Opposition were clearly of the view that this process should not be on a formal basis. It’s very clear, and I’ve always said I had no illusions about difficulty of achieving consensus,” the Green Party leader said.
“I have to say that I am disappointed that we could not have reached consensus on more matters because I believe it’s in the national interest."
In a statement issued after the meeting, the Government said the Department of Finance would remain available to brief the Opposition parties and to cost any proposals for tackling the deficit in the public finances.
The Minister for Finance would also be available to finance spokespersons to exchange analyses, it added.
Brian Lenihan this evening welcomed the commitment of Fine Gael and Labour to achieve a deficit of below 3 per cent of GDP by 2014.
"This commitment agreed between the Government and the two main Opposition parties sends out to the international markets an important signal of our determination to restore order to the public finances," he said.
The Government will unveil a four-year plan next month outlining how they plan to reduce the deficit.
Speaking in the Dáil this morning, Mr Cowen told Mr Gilmore details of the four-year plan would be provided to the Opposition "in the coming weeks."
Defending the Government's figures, the Taoiseach said he was bringing forward the pre-budget outlook and would make it available once forecasts for the growth rate for next year were decided on.
However, Mr Lenihan admitted at a banking conference today that “achieving targets set for the deficit expressed as a percentage of gross domestic product GDP will require more savings because GDP will now be lower than previously forecast".
Mr Lenihan declined to give his new forecast for GDP next year. He had forecast growth of 3.3 per cent for 2011 when he unveiled the 2010 budget but the Central Bank has said its forecast of just 2.4 per cent was in danger of being revised downwards.
A spokesman for the Department of Finance said the Government now expected growth marginally above 0 per cent for this year, down from earlier expectations of 1 per cent.
Mr Lenihan also said the National Treasury Management Agency will return to the bond markets for financing in January. Today the premium investors demand to hold Irish debt over benchmark German paper rose back to 400 basis points.
He said the participation of the Opposition parties was being sought to help address the issue of investor confidence and to remove the uncertainty that may result from a change in Government.