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Irish Banking Inquiry: Ex-PM Brian Cowen apologises for 'hardship' during crisis | |
(about 1 hour later) | |
The former Irish Prime Minister Brian Cowen has apologised for 'hardship and distress" caused by the Irish financial crisis which began during his tenure. | |
He told the Irish Banking Inquiry his government's austerity policies were a "necessary" response and that they had tried to "mitigate the human cost". | |
The parliamentary inquiry is examining the causes of the 2008 crisis. | |
Mr Cowen was taoiseach (Irish prime minister) at the time the state needed an international bailout. | |
He was also its finance minister in the preceding years. | He was also its finance minister in the preceding years. |
Mr Cowen said the government he led dealt with the crisis to the best of its abilities. | |
He said that the system of financial regulation in Ireland and elsewhere had "failed completely." | |
Bank guarantee | Bank guarantee |
Defending his time as finance minister, he said it was "simply not true" that he was beholden to property market interests. | |
He outlined a series of measures he took which he said were an attempt to cool the property boom. | |
He also defended his government's decision to guarantee the liabilities of Irish banks in September 2008, a move which ultimately led to the international bailout in 2010. | |
He said the government had "one shot" in the most acute phase of the crisis and the guarantee was the "most decisive" move it could take. | |
He added that it was "clear we we were on our own" on the night of guarantee and that the wrong decision could have set Ireland back by 25 years. | |
His written submission to the inquiry included a robust defence of his economic policies. | |
Much of the inquiry to date has focused on the events of 29 September 2008, when the Irish government agreed to guarantee the liabilities of the country's banks. | |
That decision effectively meant the Irish state and its citizens would have to cover the banks' losses. | That decision effectively meant the Irish state and its citizens would have to cover the banks' losses. |
Those losses ballooned to more than 60bn euro (£42.5bn). | |
Deep recession | Deep recession |
Mr Cowen became taoiseach and leader of the Fianna Fáil party in 2008, shortly before the global financial crisis began. | |
In Ireland, it led to a deep recession, high unemployment and a series of austerity budgets. | In Ireland, it led to a deep recession, high unemployment and a series of austerity budgets. |
Mr Cowen resigned shortly before the 2011 election in which his party's vote fell by 50%. | Mr Cowen resigned shortly before the 2011 election in which his party's vote fell by 50%. |
'Complacent' | |
In a speech in 2012, he admitted his government should have increased taxes and cut spending during the boom years. | In a speech in 2012, he admitted his government should have increased taxes and cut spending during the boom years. |
He also said that regulation of the Irish banking sector had been "complacent and permissive". | He also said that regulation of the Irish banking sector had been "complacent and permissive". |