'No unity goverment' for Ireland

Ireland's parties could work together on a four-year plan to tackle the worst budget deficit in the EU but there is no need for a cross-party government, prime minister Brian Cowen has said.

Mr Cowen's junior coalition partner, the Greens, said on Thursday a cross-party national government would ensure confidence in a four-year budget plan set to be unveiled next month, but Mr Cowen ruled it out.

"If we can work together, so be it, let's try and see if that's possible," Mr Cowen said.

"I don't see (a cross-party government] as being relevant. The last thing we need to be doing, in my opinion, is creating any further degree of political uncertainty about that."

Ireland has not yet set out in detail how it is going to get its budget deficit below an EU limit of three per cent of Gross Domestic Product by 2014 from an eye-watering 32 per cent of GDP this year.