BrianCowen vows to carry on as Irish PM

Irish prime minister Brian Cowen last night said he had the backing of his colleagues and was determined to pursue his economic reform policies.

"I have full support of all my colleagues," Mr Cowen told a press briefing outside his offices flanked by Finance Minister Brian Lenihan. "I am not a Taoiseach (prime minister] on probation."

His statement came after a member of parliament from his Fianna Fail party said it was time to replace Mr Cowen, the first party official publicly to suggest removing him after a controversy last week when he was accused of being drunk or hungover during a radio interview.

Leaders of Fianna Fail have so far stood by Mr Cowen, whose popularity had already hit historic lows before last week's incident as he struggled to contain Europe's biggest budget deficit.

"The chairman of the parliamentary party should call a special meeting to discuss now where we go from here," said Tom Kitt, a Fianna Fail MP and former government chief whip. Mr Kitt said the party needed someone who could communicate tough fiscal measures better to voters.

Ireland's cost of borrowing reached its highest point since the launch of the euro yesterday as investors sold off government bonds on speculation of financial and government instability. The interest rates on Irish ten-year bonds hit nearly 6.47 per cent.

The previous record high for Irish bonds was 6.35 per cent reached on Friday when Dublin media reports fanned fears of a growing risk of an International Monetary Fund bailout.