The Taoiseach has dismissed as "fantasy politics" a demand by the Sinn Féin leader that the Government renege on payments due to bondholders.
During sharp exchanges with Gerry Adams in the Dáil this afternoon, Enda Kenny asked how public services would be provided without the money currently being received by the State?
"We have a country which is in difficult circumstances, but, believe you me, I have no intention of defaulting on Ireland’s position and ending up with difficulties like the citizens of Greece now find themselves in," said the Taoiseach.
Mr Kenny said the European Central Bank had given €110 billion to Irish banks covered by the guarantee to provide services ranging from ATM machines to public pay scales and the running of the economy.
Mr Adams said the State could not afford the €1.25 billion due to be paid to unguaranteed, unsecured bondholders tomorrow.
It was more, he said, than all the additional taxes which the Government had inflicted on citizens.
"It is more than the household charge, the increase in VAT and the increase in motor tax," he added.
Before the election, it was a case of "Labour's way or Frankfurt's way" and Fine Gael's assertion was that not another red cent would be paid, said Mr Adams.
Mr Kenny said what Fine Gael had pledged before the election was that not one cent more than what was already committed to would be paid.