Brian Cowen To Take €14,000 Pay Cut

Taoiseach Brian Cowen is to give himself a €14,000 paycut in today's budget, according to early reports this afternoon.

The Fianna Fail leader will also be issuing paycuts to other ministers in what is expected to be one of the most severe budgets ever delivered in Irish history.

The 2011 budget will involve a €6 billion package of 'front-loaded' adjustments agreed between the Government, the European Union and the International Monetary Fund in the first tranche of the four-year National Recovery Plan.

Mr Cowen is expected to face veracious criticism over the proposed salary reduction, which will not affect his standing as the best paid premier in Europe, nor will the decision affect his wages as it is likely the leadership of the State will have changed hands before the cut comes into effect.

Brian Cowen's current support ratings are now at around 8% of the population while his party's support has slipped to just 14%.

The news comes in a torrent of embarrassment for the Finance Minister Brian Lenihan who was yesterday named the worst finance minister in Europe by a leading financial newspaper.

The British Financial Times said Mr Lenihan was "overwhelmed by the crisis in Ireland's banking system" and failed to rescue the banks despite the massive taxpayer bailout.

"Some countries' problems simply proved too great to handle," said the newspaper. "Brian Lenihan was overwhelmed by the crisis in Ireland's banking system and the implosion of the country's economic growth."

Also believed to feature in today's budget are proposals for a narrowing of the income tax bands with those on very low salaries of €15,000 being forced to pay tax; A cut of €10 a month in child benefit for the first and second child and €20 for subsequent children and the removal of tax advantages for private and personal pensions.

(DW)