DUBLIN, Nov 21 (Reuters) - Ireland's government on Sunday accepted the recommendation of its finance minister to seek a bailout from international lenders, a move to shore up its battered banks and secure cheaper state funding.
Below are a selection of comments from Irish Prime Minister Brian Cowen and Finance Minister Brian Lenihan:
COWEN ON BAILOUT
'The European authorities have agreed to our request. A formal process of negotiation will now commence that will lead to the provision of assistance on the basis of programme to be negotiated by the government with the European Commission and the International Monetary Fund in liaIson with the European Central Bank.
'I expect that agreement to be finalised shortly, within the next few weeks.'
COWEN ON FOUR-YEAR PLAN
'The next step in the process will the publication of the government's four-year plan to solve the problems of the public finances ...
'The four-year plan will provide a reduction of 15 billion euros by 2014 ...
'It will be broken down into tax increases of 5 billion euros and spending cuts of 10 billion euros over four years.'
COWEN ON BANK SIZES
'Irish banks will become significantly smaller than they have been in the past, so that they can gradually be brought to stand on their own two feet once more.'
COWEN ON CORPORATION TAX
'I can say clearly that the question of changing our corporation tax rate has not arisen.'
COWEN ON INCOME TAX
'Income tax levels will return to levels applied in 2006 over the period of the plan.'
COWEN ON SOLIDARITY
'We must have faith in our ability as a people to recover and to prosper once more ... Rebuilding our economy falls to our own efforts as a people. That is where the focus of our efforts must turn as a people, beginning with the four-year plan and then the budget. Now we need to show the solidarity in our own country that our neighbours have shown to us at this time.'
LENIHAN ON IRISH ECONOMY
'There are underlying fundamentals in the Irish economy which are very, very sound. We have seen a 6 percent increase in exports year-on-year this year.'
LENIHAN ON BILATERAL LOANS
'The United Kingdom and Sweden have also indicated that they stand ready to provide considerable bilateral loans.'
LENIHAN ON FUTURE BANK CAPITAL FUNDS
'It is essential that we continue the path of correction in relation to the state finances and in relation to the banking difficulties ...The programme will include a fund for potential future capital needs of the banking sector.'
LENIHAN ON FOUR-YEAR PLAN
'The four-year budgetary strategy: The strategy will provide the details of the government's commitment to meet the necessary target of 6 billion (euro) adjustment next year and a 15 billion adjustment over the four-year strategy, all leading to a 3 percent GDP deficit by 2014.'
Keywords: IRELAND BAILOUT/CABINET
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Below are a selection of comments from Irish Prime Minister Brian Cowen and Finance Minister Brian Lenihan:
COWEN ON BAILOUT
'The European authorities have agreed to our request. A formal process of negotiation will now commence that will lead to the provision of assistance on the basis of programme to be negotiated by the government with the European Commission and the International Monetary Fund in liaIson with the European Central Bank.
'I expect that agreement to be finalised shortly, within the next few weeks.'
COWEN ON FOUR-YEAR PLAN
'The next step in the process will the publication of the government's four-year plan to solve the problems of the public finances ...
'The four-year plan will provide a reduction of 15 billion euros by 2014 ...
'It will be broken down into tax increases of 5 billion euros and spending cuts of 10 billion euros over four years.'
COWEN ON BANK SIZES
'Irish banks will become significantly smaller than they have been in the past, so that they can gradually be brought to stand on their own two feet once more.'
COWEN ON CORPORATION TAX
'I can say clearly that the question of changing our corporation tax rate has not arisen.'
COWEN ON INCOME TAX
'Income tax levels will return to levels applied in 2006 over the period of the plan.'
COWEN ON SOLIDARITY
'We must have faith in our ability as a people to recover and to prosper once more ... Rebuilding our economy falls to our own efforts as a people. That is where the focus of our efforts must turn as a people, beginning with the four-year plan and then the budget. Now we need to show the solidarity in our own country that our neighbours have shown to us at this time.'
LENIHAN ON IRISH ECONOMY
'There are underlying fundamentals in the Irish economy which are very, very sound. We have seen a 6 percent increase in exports year-on-year this year.'
LENIHAN ON BILATERAL LOANS
'The United Kingdom and Sweden have also indicated that they stand ready to provide considerable bilateral loans.'
LENIHAN ON FUTURE BANK CAPITAL FUNDS
'It is essential that we continue the path of correction in relation to the state finances and in relation to the banking difficulties ...The programme will include a fund for potential future capital needs of the banking sector.'
LENIHAN ON FOUR-YEAR PLAN
'The four-year budgetary strategy: The strategy will provide the details of the government's commitment to meet the necessary target of 6 billion (euro) adjustment next year and a 15 billion adjustment over the four-year strategy, all leading to a 3 percent GDP deficit by 2014.'
Keywords: IRELAND BAILOUT/CABINET
COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.