Changes

Upon assuming office, Cowen enjoyed high popularity in opinion polls. However, this "political honeymoon" as it was called was not to last. A [[referendum]] on the [[European Union]]'s Lisbon Treaty was due within a month of Cowen's assumption of office, and despite a vigorous campaign on his part for a Yes vote, the treaty was rejected. Cowen was seen as having lost his first political test.  

Upon assuming office, Cowen enjoyed high popularity in opinion polls. However, this "political honeymoon" as it was called was not to last. A [[referendum]] on the [[European Union]]'s Lisbon Treaty was due within a month of Cowen's assumption of office, and despite a vigorous campaign on his part for a Yes vote, the treaty was rejected. Cowen was seen as having lost his first political test.  

Throughout the summer various other problems ensued, most notably concerning the economy, which was heading towards a recession. With the economic crisis proving particularly bad in late September and early October, and following the initial rejection by the US [[House of Representatives]] of a $700 billion dollar bail out bill, Cowen and his Finance Minister Brian Lenihan Jr. formed an Irish equivalent of the bail out scheme. The government maintained that such an action was necessary to prevent the complete collapse of the Irish economy. Though initially controversial, the action was welcomed by the public.  

Throughout the summer various other problems ensued, most notably concerning the economy, which was heading towards a recession. With the economic crisis proving particularly bad in late September and early October, and following the initial rejection by the US [[House of Representatives]] of a $700 billion bail out bill, Cowen and his Finance Minister Brian Lenihan Jr. formed an Irish equivalent of the bail out scheme. The government maintained that such an action was necessary to prevent the complete collapse of the Irish economy. Though initially controversial, the action was welcomed by the public.  

This warm reception did not last however - the Government Budget for 2009, announced in October 2008 by Finance Minister Brian Lenihan proved to be extremely contentious. Of most pressing concern was the government decision to take away medical cards from over-70s as a costcutting measure, and a 1% levy on all incomes. Though these measures were blamed on the recession the Irish economy was finding itself in, they were extremely unpopular. In the days after the announcement of the Budget, Cowen made concessions, reversing the income levy for those on the minimum wage, and raising the income limit for seniors that would determine whether or not they would be allowed a medical card.

This warm reception did not last however - the Government Budget for 2009, announced in October 2008 by Finance Minister Brian Lenihan proved to be extremely contentious. Of most pressing concern was the government decision to take away medical cards from over-70s as a costcutting measure, and a 1% levy on all incomes. Though these measures were blamed on the recession the Irish economy was finding itself in, they were extremely unpopular. In the days after the announcement of the Budget, Cowen made concessions, reversing the income levy for those on the minimum wage, and raising the income limit for seniors that would determine whether or not they would be allowed a medical card.