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Corrected: Irish PM says to stay on after challenge
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Corrected: Irish PM says to stay on after challenge
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Mon Sep 20, 2010 4:36pm EDT
(Corrects Lenihan's remarks in paragraph 12 to make clear he backed Cowen)
By Andras Gergely
DUBLIN (Reuters) - Irish Prime Minister Brian Cowen said on Monday he would stay in his job and continue economic reforms despite facing the first public calls to quit from within his party since a radio blunder last week.
Cowen said on Friday he would socialize more cautiously after being forced to apologize for the "hoarseness" of his voice in an interview the morning after he finished partying with colleagues at an annual conference.
Leaders of the Fianna Fail party have stood by Cowen, whose popularity had already fallen to historic lows before last week's incident as he struggled to contain Europe's biggest budget deficit.
Irish borrowing costs have rocketed in recent weeks on fears the rising cost of bailing out its banks and continued weak growth could tip the former "Celtic Tiger" into a full-blown debt crisis.
Tom Kitt, a Fianna Fail MP and former government chief whip, on Monday called for a special meeting of deputies to replace Cowen. Kitt said Cowen's interview was a one-off mistake but that the party needed someone who could communicate tough fiscal measures better to voters.
"The time has come to move on to new leadership," he told RTE radio.
A second MP, Michael Kennedy later backed Kitt's call for a meeting to discuss the issue, saying it would allow Cowen to explain how he would improve his communication.
At a press briefing outside his office, Cowen rejected the call and said he enjoyed the support of all his government colleagues.
"I am not a Taoiseach (prime minister) on probation," he said.
GETTING ON WITH ECONOMIC CHALLENGE
One of the main candidates to succeed Cowen in the event of a move to replace him, Finance Minister Brian Lenihan, was by Cowen's side at the briefing and said he was focused on the financial markets rather than on politics.
"The most important rumbles around here are the rumbles we are seeing in the international markets," said Lenihan, who has been battling cancer this year.
Lenihan said he supported Cowen but he acknowledged other MPs had raised questions about the premier.
"I have no doubt that will be dealt with within the procedures of the parliamentary party," Lenihan said in a television interview after the briefing.
Government Chief Whip John Curran, whose role is to keep party MPs in line, said deputies will hold their next scheduled meeting in two weeks' time and calling an ad hoc meeting would just be a distraction.
"I know that the vast majority of the Fianna Fail organization, the parliamentary party and the rest of the country want us to get on with the real challenge -- restoring growth and confidence in Ireland," Curran said in a statement.
Michael Lowry, an independent MP whose votes usually support Cowen's thin majority, said he would not back any Fianna Fail leader other than Cowen.
Analysts said a change of prime minister would not necessarily unsettle markets as much as a complete change of government, while the promotion of Lenihan, who has strong reform credentials, would be welcomed.
"I suppose the only negative is that if he were to move away from the finance brief that wouldn't be perceived to be very positive," said Padhraic Garvey strategist at ING in Amsterdam.
(Additional reporting by Carmel Crimmins; editing by Noah Barkin)
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