Minister for the Environment John Gormley said this evening he expected the proposal being brought to the Cabinet for a loan application to the IMF and EU will be “effective”.
Speaking to reporters as he arrived at Government buildings for the Cabinet meeting, Mr Gormley said: "I can fully understand that there's a great level of concern out there because I think the communications of last weekend were very poor and people feel misled as a consequence.
"But certainly we need to get clarity around this issue and that's why Mr Lenihan is bringing this proposal before Cabinet and I'm confident that it will be effective and for that reason I feel the very legitimate concern of the people can be relieved."
The conditions of the loan were a concern "and the negotiations that take place will look at those particular issues. They will have to look at the rate of interest paid, the set of conditions attached and so of course there is concern. But it has to be remembered that our room for manoeuvre was always limited in any case.
"We have to appeal to market sentiment and the rates that we were being charged were exhorbitant. That's why it's important to remember also that the plan we're discussing this afternoon and indeed the budget, these are entirely of our own making. There's no input from the IMF and that has to be understood."
He said that "before there was any discussion with the IMF the Government was in a position to put together a budget and four year plan".
He added that there is "legitimate" talk about an erosion of sovereignty. "But I think it's important to remember that our sovereignty was eroded when we joined the EU.
"When you are captive to international global markets in a small open economy, then the talk of sovereignty sometimes is a moot point," Mr Gormley said. "Our room to manoeuvre has been limited for quite some time."
Asked if Ireland should have joined the EU in the first place, he said the country, as a small open economy, had little choice. "You have to go with the advantages and the disadvantages."
