Brian Cowen (Laois-Offaly, Fianna Fail)

This budget is being introduced at a time of great uncertainty across the economies of the developed world. We are living through an economic crisis with few parallels which is impacting in new and unpredictable ways on people, businesses and entire countries. Ireland has been affected more than most, partly because our economy is so dependent on international trade and investment and partly because of the scale of the fall-out from an overheated construction sector. It is the responsibility of those holding elected office to focus their energy on the future and to take action to solve the problems facing the people who elect us. That is the focus of the national recovery four year plan.

This budget makes the practical but difficult decisions that must be implemented to ensure Ireland recovers as quickly as possible. These decisions are not taken lightly. The Government is fully aware of the impact they will have on families across the country and has carefully considered all options and possibilities. We have taken these decisions in a way that balances the need to protect the most vulnerable, the need to meet our international obligations and the need to promote economic growth and employment.

The budget bears evenly on people and strives to share the burden fairly. Having stabilised the deficit this year, we have to take an important further step towards narrowing the large gap between what we, as a State, spend and what we take in. If we had taken no action, this gap would have grown again in 2011 from €18.7 billion to €22 billion. Our aim next year is to reduce the general government balance from 11.6% to 9.4% of GDP. As with paying a mortgage, the later steps will become progressively easier. With the budgets of the past two years, we were halfway along the path, with a €14.6 billion reduction since 2008. With this budget we are now two thirds of the way through the necessary adjustments.

Looking back, I doubt that any Government has acted so decisively and with such energy in a short period or done so much political heavy lifting.

See this speech in context