Secret government memos obtained by the Sunday Independent reveal how the economy was mismanaged under Brian Cowen at the start of the economic crash.
The documents describe how in June 2008 the late Finance Minister, Brian Lenihan, was told by the then Secretary-General of his department, that the substantial increase in public spending was unsustainable.
Mr Lenihan went on to discuss the matter with the then Taoiseach Bertie Ahern and Cabinet.
However, despite the warnings, Mr Lenihan still proposed 500-million euro of additional social welfare payments, a 2.5% pay increase for 300-thousand public servants.
Daniel McConnell Group Political Correspondant with Independent Newspapers says members of Government tried desperately to bury their heads in the sand:
