HE WILL have to do it his way now and it will emerge in the coming days whether he has minimised the chances of success. The blame game will kick into top gear. Having failed to secure agreement from the social partners for the fine detail of a Pact for Stabilisation, Social Solidarity and Economic Renewal at the eleventh hour, Brian Cowen finds himself in an unenviable position. The Government now proceeds alone – without public support from the trade unions, the Opposition parties and the Dáil – to implement savings of more than €2 billion, mainly involving the public sector, to deal with the biggest crisis in 70 years in the State’s finances. It could have been different.
The Taoiseach appeared cowed and downtrodden in the Dáil yesterday when he made the announcement that he will impose the proposals rejected only 12 hours earlier by the trade unions. He missed a great opportunity to move on and speak to the general public. His approach was roundly criticised by Enda Kenny and Eamon Gilmore, an entirely predictable reaction after last week’s treatment of the Dáil when he initiated a debate on economic recovery in the absence of Government proposals.
It was an unedifying end to weeks of private negotiations. At a time when strength and social solidarity is desperately required from those in positions of authority, we had divisions and apparent weakness. In addition, there is no certainty that the fiscal measures announced – already mediated through the partnership process – will be sufficient to turn the Government’s finances around.
Mr Cowen made it clear, as did trade unions and employers, that he has not given up on social partnership. That is important. Although agreement was not reached on specific measures, a broad consensus appears to have emerged on what has to be done to regain competitiveness. That reform will require further input from the social partners.
In present circumstances, however, a degree of cohesion is urgently needed between the Government and Opposition parties. We are beyond the point of party politics. The country is in the most serious economic crisis. The Taoiseach has the primary responsibility for securing a political consensus by improving personal relations with the leaders of the Opposition. But the Opposition parties also have national responsibilities in this time of crisis. Difficulties facing the State are now so acute that elected representatives of all parties have a duty to contribute in a positive fashion.
The last seven months have brought a series of evasions, miscalculations and political mistakes. Having belatedly acknowledged the threat posed by a collapsing housing market and the credit crunch, the Government introduced an inadequate budget, vacillated over the consolidation and recapitalisation of banks and produced an unconvincing framework for recovery. There is nowhere to hide now. The fair sharing of pain is the barometer by which any recovery plan will be judged.