Brian Cowen resigns as Fianna Fáil leader amid calls for early election

Ireland's political future was thrown in uncertainty today after the embattled Irish prime minister, Brian Cowen, stepped down as the leader of his party but came under mounting pressure from the opposition to bring forward the country's general election date from 11 March.

Resigning as leader of Fianna Fáil, Cowen insisted that he would remain as taoiseach until Ireland went to the polls and said that he wanted to ensure that vital business, including a finance bill that will implement harsh economic austerity measures, got through the Irish parliament prior to the Dáil being dissolved.

Enda Kenny, leader of the main opposition party, Fine Gael, lambasted Cowen's move and threatened to table a motion of no confidence in him on Tuesday unless he called an immediate election. Kenny's finance spokesman said Fine Gael would hold off on the vote and help pass the finance bill if Cowen was prepared to dissolve parliament on Friday and bring the election date forward.

Cowen told journalists that although he wanted the government to continue, it would be better for Fianna Fáil to have a new leader to take the party into the election. "It is the best decision for the party in these circumstances. It was not a cynical move by me," he said.

"I'm concerned that renewed internal criticism of Fianna Fáil is deflecting attention from this important debate."

Fianna Fáil has confirmed it will choose its new leader on Wednesday. Brian Lenihan, Micheál Martin, Mary Hanafin and Éamon Ó Cuív, the grandson of Éamon de Valera, have confirmed they will stand. Cowen pledged his "full support" for whoever was selected. "After discussing the matter with my family, I have taken, on my own counsel, the decision to step down," he said.

Earlier last week Cowen survived a leadership challenge after winning a vote of confidence from the Fianna Fáil parliamentary party. But his position at the helm of the party was seriously compromised last Thursday when he botched an attempt to reshuffle his cabinet. Six ministers resigned, but his Green party coalition partners objected to new appointments to the cabinet and Cowen, along with others, had to take up a number of different portfolios. Today's move will please a number of key Fianna Fáil figures who wanted him to stand down as leader to allow them to enter the election with a new head. His critics believe that another leader will minimise Fianna Fáil's losses in the election.

Fianna Fáil is on course to suffer a historic defeat, losing more than half its 71 sitting members of the Dáil. Polls have even found that its support could fall to 14% – a disaster for a party that has been the most successful since the Irish state was founded. The party has been blamed for mishandling the economy and the country's fiscal crisis.