Taoiseach Brian Cowen said today he is "extremely sorry" for the situation the country finds itself in.
Speaking during an interview on RTÉ radio this afternoon Mr Cowen said he "apologised unconditionally" for the state of the country's finances and the severe adjustment needed to reduce the deficit.
However, Mr Cowen added he still intends to lead the party into the upcoming election.
"I am extremely sorry that we are in this situation," said Mr Cowen during an interview broadcast on News at One.
"I have said it from day one that I am sorry we are in this situation but it is my job and the job of all of us to move on and get this country moving back to where we have to get it," he added.
The Taoiseach claimed the Government had acted on the "best possible advice available to it" during the financial crisis. He also defended his actions as minister for finance, claiming he was the first minister to seek to calm the property sector by removing tax reliefs.
Mr Cowen said he believed many of the gains achieved during the boom years could be safeguarded.
"I'm proud of the fact that during the good times we were able to make many social gains as well as economic advances ... and it does nothing for the confidence of this country to suggest that after the economic tsunami which hit us in 2008 (that) everything has gone out with the sea," he said.
The Taoiseach said he still planned on leading Fianna Fáil in the next election despite widespread rumours of a heave against him.
"We have a party that is going to fight this election under my leadership," said Mr Cowen, who denied Minister for Finance Brian Lenihan was one of those plotting behind his back.
The Taoiseach said he did not consider calling an election after the Green Party announced it was to pull out of Government because it was "absolutely critical" for the four-year plan to be completed and the Budget passed.
He also claimed the next government would also have to take tough decisions to aid economic recovery. "Whoever governs this country over the next four years better be prepared to take the decisions and make sure we can sustain growth and have a future," he said.
