Greece must follow Irish example to avert financial crisis, says Cowen

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Irish Prime Minister Brian Cowen had stern words for Greece.

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Greece must follow the Irish example to find a way out of their financial crisis, Irish Prime Minister Brian Cowen told a European Union summit in Brussels yesterday.

It is an extraordinary turnaround where Ireland, until lately seen as the basket case of Europe, has suddenly become the example to countries which now have even greater problems.

Greece will owe $90 billion in repayments by the end of 2010, the EU summit heard. The International Monetary Fund and the European Union are closely monitoring developments there.

Greece's deficit is 13 percent of GDP, 10 percent over the agreed limit. Ireland's was close to 15 percent but has been reduced by 2.5 percent.

Since then the Irish took draconian measures to curb public spending. There are more hairshirt budgets on the way. The Irish also have far less borrowing,

Greece, on the other hand, is threatened with a national strike, which is likely to  go ahead if they enact such draconian measures.

Brian Cowen, however, warned yesterday that Greece has no choice but to reduce their deficit by 4 percent this year, the Irish Independent reported.

"It is the same process. It is an excessive deficit procedure. The same as we had to take," Mr Cowen said.

The key step for Greece was "to provide confidence." He said that the country was tackling its problems.

The Irish had done that by its harsh measures. "All of that is about strengthening the view of Ireland, both out there and back home, that we are determined to gain control of our own affairs. That's what we want to do," Cowen said.

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