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| Irish talks on 2bn euro cuts fail | |
| (19 minutes later) | |
| Talks between the Irish government, unions and employers aimed at cutting 2bn euro from public spending collapsed early on Tuesday morning. | |
| The Irish coalition cabinet is due to meet later to finalise their cutback plans. | The Irish coalition cabinet is due to meet later to finalise their cutback plans. |
| Taoiseach Brian Cowen said he regretted not reaching agreement with the unions on cutting the public sector pay bill. | Taoiseach Brian Cowen said he regretted not reaching agreement with the unions on cutting the public sector pay bill. |
| The unions believe proposed savings on pensions could disproportionately affect those on middle incomes. | The unions believe proposed savings on pensions could disproportionately affect those on middle incomes. |
| The Irish government must find a further 4bn euro in savings next year. | The Irish government must find a further 4bn euro in savings next year. |
| Mr Cowen is anxious to persuade international bond markets that Ireland should retain its triple A rating and that the government is dealing with the country's financial crisis. | Mr Cowen is anxious to persuade international bond markets that Ireland should retain its triple A rating and that the government is dealing with the country's financial crisis. |