Irish PM heads for big poll defeat

By Padraic Halpin and Andras Gergely

DUBLIN (Reuters) - Ireland's ruling party was heading for a record defeat in European and local elections on Saturday, but Prime Minister Brian Cowen vowed to stay in office until the end of his government's term in 2012.

Opposition Fine Gael took nearly 32 percent of the vote in local polls, according to latest results, beating Cowen's Fianna Fail party into second place with 23 percent, and tabled a motion of no confidence in the government next week.

Cowen, who took over as prime minister a year ago, is expected to survive the vote in parliament but could face a revolt within his party later in the year, analysts said.

"The tide of public opinion is against us at the moment," Cowen said. "But we have to continue with the work we have set out, that is to fix this recession ... and to use the mandate we have until 2012 to do so."

Fianna Fail has dominated Irish politics since the 1930s but is facing unprecedented voter anger for failing to prevent the former "Celtic Tiger" economy falling into severe recession and raising taxes to try to end twin fiscal and banking crises.

George Lee, a former economics broadcaster and longtime critic of government policy, sailed to victory in a parliamentary by-election that will cut Cowen's majority to around 51 percent, making it increasingly difficult for him to push through unpopular fiscal measures.

Fianna Fail received a drubbing in a second parliamentary by-election in Dublin in which Maurice Ahern, brother of former prime minister Bertie, was battered into 5th position and left fighting for his council seat.

ECONOMY THE KEY