The Dáil has passed a motion of confidence in Taoiseach Brian Cowen by a margin of five votes.
The vote was won by the Government with 82 votes against 77.
Speaking during today's debate, Mr Cowen said he wanted to accept full responsibility for the decisions he took as minister for finance and Taoiseach.
“I believe that the record, informed by the expert analysis published over recent days, demonstrates that I acted to correct imbalances in our tax relief system and to rebalance the focus of economic policy from an excessive dependence on property and construction towards a more balanced and sustainable economy,” he said.
“I wish to repeat my full acceptance of responsibility for the decisions I took, as Minister and now as Taoiseach,” he said. “I believe that the record, informed by the expert analysis published over recent days, demonstrates that I acted to correct imbalances in our tax relief system and to re-balance the focus of economic policy from an excessive dependence on property and construction towards a more balanced and sustainable economy.”
Opening the debate on a motion of confidence in himself, moved by the Government in response to a Fine Gael motion of no confidence, Mr Cowen said there were severe failings in the banking and regulatory systems. He said there had been a collapse in international financial markets to a degree which could scarcely have been anticipated.
“Accepting due responsibility as I do, does not, however, oblige me to accept the rewriting of history and the bare-faced denials about their record on the part of the Opposition,” he added.
Fine Gael leader Enda Kenny said the Taoiseach had blamed the economic crisis on Lehman Brothers. "The pattern is clear: you are never there when there is a problem, you are never responsible when there is a failure,” he added.
“If you had any integrity, you would have already resigned. If you had any respect for the people whose lives you’ve destroyed, you’d have already called a general election," he said. “You are never to blame, Taoiseach, when things go wrong.”
Green Party leader John Gormley accused sections of Fine Gael of being more comfortable with the politics of Sarah Palin than those of President Barack Obama.
He wanted to continue with the Government's reform agenda, he said, adding that the Fine Gael motion of no confidence was akin to asking parties to vote for a general election.
Minister for Health Mary Harney described Mr Cowen as "straight, honest and hardworking'', adding that he was a person of substance and enormous courage.
Labour leader Eamon Gilmore said his party would not vote confidence in Mr Cowen because, like the Irish people, it had long ago lost faith in him and his ministers. "We want this Government out. We want a fresh start for the country,” said Mr Gilmore. “But how do the Independent deputies, the Green deputies, or the Fianna Fáil backbenchers stand?”
Sinn Féin Dáil leader Caoimhghín Ó Caoláin said the public was being made to pay the price for the disastrous failures of successive Fianna Fáil-led Governments.
He said there was a myth being peddled by Fianna Fail that “all political parties in the Dáil were part of this collective self-delusion and encouraged the economic policies pursued between 1997 and 2007”.
Sinn Féin “repeatedly advocated a radically different direction for the economy. In the 2007 General Election itself we were the only party not promoting a policy of tax-cutting”.
He said that Sinn Féin had consistently advocated alternative polices and warned against the direction being taken by Finance Ministers McCreevy, Cowen and Brian Lenihan.
“Fianna Fáil has shaped this economy in a way that no previous Government could have shaped it because of their length of time in office and the massive resources at their disposal. Clearly, there is not a shred of credibility in their effort to shirk responsibility for what has happened to the Irish economy", he said.
The Government is expected to have a comfortable majority when the House votes on the motion tonight.
Support for Government comes from the six Green TDs and two former PDs, Minister for Health Mary Harney and Noel Grealish. The Government is also supported by a number of other Independents.
Fianna Fáil backbenchers Mattie McGrath and John McGuinness, both of whom have a history of disagreeing with the party establishment, both confirmed last night they would be voting with the Government.
Two Independent TDs, Finian McGrath of Dublin North Central and Maureen O’Sullivan of Dublin Central, have confirmed they will vote against the Government. Independent Wicklow TD Joe Behan, formerly of Fianna Fáil, has refused to state which way he will be voting.
Government-supporting Independents Jackie Healy-Rae and Michael Lowry are expected to back Mr Cowen.