The Irish Independent reports that the 44th President of the United States looked out over the room on Capitol Hill where some of of America's most powerful politicians were crammed together around tables, and chatted about his Irish roots.

The Taoiseach was from County Offaly, he explained. "I can trace my ancestry there as well. I believe it's my great-great-great-great-great-grandpa, who was a bootmaker," he said.

And then Barack Obama let loose one of his trademark dazzling grins. "I actually discovered my Irish lineage when I was running for president, and my first thought was, 'Why didn't anyone discover this when I was running for office in Chicago?' "I would've got here sooner," he said wryly as legislators from both sides of the deeply partisan House of Congress were united in laughter. It was a glorious day in Washington DC. The temperature had soared overnight into spring warmth, and the air was bright with talk of the 'Luck of the Irish'.

The beleaguered natives of the Auld Sod may not be feeling particularly fortunate at the moment, enveloped by general doom and despondency over the rickety economy, but being Irish in Washington DC is still worth a few bucks in political capital (or Capitol).

For once again the Paddywagon rolled into town and right up to the front door of the White House, with the Taoiseach being granted access to the Leader of the Free World -- the envy of many a country whose economies haven't careered over the side of a cliff.

And so the metaphorical green carpet was rolled out for Brian Cowen yesterday by Mr Obama, even though he is busily engaged in a titanic struggle with congress this week to ram through his enormous healthcare bill.

And there was even an extra addition to the St Patrick's Day beano.

The day began with breakfast at Joe's -- as in the residence of the vice-president, Joe Biden, a beautiful New England-style house in Georgetown, cream with green shutters, a haven from the Beltway bustle.

Joe and his wife Jill -- in an elegant green and blue dress -- greeted Brian and Mary Cowen as they arrived at 8.30am.

The Taoiseach had not come empty-handed, and immediately set about pinning sprigs of shamrock to the lapel of the vice-president -- who has far closer Irish roots through his late mother, Jean Finnegan Biden, who died in January.

After a good feed of omelettes and chicken apple sausages, it was off to the White House for a 40-minute face-to-face with the president.

On their first meeting last year the pair hit it off famously, and it was clear by the relaxed mood as they chatted in the Oval Office that this relationship had survived what has been a rocky 12 months for both leaders.

Mr Obama was a little more low-key this year, a little thinner too, with flecks of gray in his tightly-cropped hair. Last year he was still bathed in the rosy glow of his historic election.

Now he's deep in the trenches of legislative warfare in a country still fighting to break free of recession and still sending troops into Iraq and Afghanistan. No wonder he looked a little weary.

But despite -- or perhaps because of -- all this, there is still time to nurture the Irish-American vote.

"Thirty-six million Americans claim Irish ancestry, and I'm sure more do on St Patrick's Day," said Mr Obama to the press pack who were gathered around him in the beautiful, yellow-hued and sun-dappled oval room.

"It's a testament to how close our two countries are that America has been shaped culturally, politically, economically by the incredible contribution of Irish-Americans."

And there was an incredible contribution by RTE's Charlie Bird, who swooped in with an unscheduled question about whether the president would grace Irish shores.

"I would love to come to Ireland," he told Charlie, much to the Taoiseach's bemusement. Honestly, you can't take the Irish anywhere, not even to the Oval Office.

After the meeting, the Taoiseach practically skipped out of the White House and over to the media. "It was a great meeting, a wonderful day," he said happily.

Brian explained that they had discussed the economic situation and also the North, and the president had heaped praise on Foreign Affairs Minister Micheal Martin for his recent heroic efforts to solve the impasse over devolution and policing.

Even our Taoiseach was a bit star-struck by such close and prolonged exposure to the charismatic Barack Obama. "He's a very personable, warm individual, and we're very grateful for the access that we can get to meet the president," he said.

But would he get the chance to worship Barack from near as opposed to afar? Had he asked him (again) to drop into Ireland for a longer stay than the six times he's touched down at Shannon for refuelling en route to elsewhere?

Brian looked bashful. He hadn't wanted to make a nuisance of himself.

"I made it clear to the president again, rather than continuing with a sequential invitation, that there is a standing invitation for him to visit my constituency at any time -- and coming to the country will be a nice consequence as well," he laughed.

And at the lunch hosted by the Speaker of the House Nancy Pelosi, Barack Obama heaped praise on the influence of the Irish on his country, describing St Patrick's Day as "a day to thank the Irish people for all they have done for America; few nations so small have had such an enormous impact on another".

"They came to our shores in waves, by choice as well as by necessity, building lives even as they were building a new nation, enriching our heritage, enriching our culture in their own way.

"But the truth is, they weren't always welcome," he added.

"There were times when the Irish were caricatured, stereotyped, blamed for society's ills. So naturally it was a good fit for them to go into politics," he deadpanned to laughter.

And so the day ended with an evening hooley in the White House for Brian and Mary, hosted by the Obamas.

Among the guests were golfer Padraig Harrington and hotelier John Fitzpatrick, who had been honoured earlier in the week as Irish-American of the Year and Ryan Tubridy and his girlfriend Aoibhinn Ni Shuilleabhain.

The serious business of the day was over, and Brian was able to joke to the president that it was "amazing how many O'Haras, O'Sullivans and O'Neills are frantically searching to see if they are in any way linked to the O'Bamas".

It's amazing, really. The previous evening at a gala Irish-American event, entertainment was provided by Irish dancing Hispanic and African-American kids called Keltic Dream.

At the same event, Secretary of State and former First Lady Hillary Clinton had told a story about how during a stopover at Shannon, Chelsea had persuaded security to let her off Airforce One to fill a bottle with some Irish soil. "She's kept it ever since," said Hillary.

Ireland may be down on the canvas, but we've still some good people in our corner. We're not out for the count, not yet.

The Irish Independent also reports that bad loan losses at Anglo Irish Bank are now set to come in around the €14bn level, as the nationalised bank and its auditors fine-tune figures ahead of publication next week.

It will be the largest loss ever unveiled by an Irish corporation.

It is understood that the nationalised group's overall pre-tax loss will still come in just below €12bn for the 15 months to the end of last December.

Yesterday was the second anniversary of the so-called St Patrick's Day Massacre, when then publicly quoted Anglo stock plunged as much as 22pc to lead a broad sell-off of Irish banking stocks. The stock ended the session off 15pc -- just days after the near-collapse of US investment bank Bear Stearns.

The episode prompted an investigation by the Financial Regulator into suspected "rumour-mongering". However, the probe concluded that Dublin stockbrokers broke no market rules.

Impairment

Anglo's figures are set to show that the group's massive impairment charge will be partially offset by a €1.8bn extraordinary gain from a large debt restructuring last summer, which took some of its subordinated bondholders out at a deeply discounted market price.

It is also believed that the group will post between €500m and €800m of operating profits, which will also absorb some of the bad loan losses.

Anglo is preparing to transfer up to €35bn of its loan book to NAMA over the coming months. The bad loan losses for the 15-month period will take into account most of the discounts faced on these loans.

It is expected that Anglo will require an additional €6bn to cushion the group's balance sheet, as it seeks to split itself into an internal 'good bank' and 'bad bank' under a huge state-aid restructuring plan being assessed by Brussels. The plan would be to run down assets that end up in the 'bad bank' over time.

The Irish Times reports that the European Commission has told the Government that its projections for correcting the economy are too optimistic and the cuts may have to be more severe than planned. It has also called on Ireland to set out in detail the economic measures it proposes to take in coming years.

In a blunt assessment of a programme that already foresees €3 billion in new cutbacks and tax measures in 2011 and a further €3 billion in 2012, the EU executive says the Government’s plans for the entire 2011-2014 period should be strengthened to avert the risk that targets might be missed.

“As regards Ireland, yes, the scenario is assessed to be on the optimistic side. In particular in the outer years, the growth assumptions look quite optimistic to us,” a senior commission official said yesterday.

Although the commission says the Government should now set out the concrete measures it plans to take in the coming years, Minister for Finance Brian Lenihan said future measures would be decided only at budget time in the years concerned.

After a stringent series of cutbacks in his budget this year, Mr Lenihan has expressed cautious optimism that the Irish economy is turning the corner after a severe contraction.

In a routine review of his recovery plan, however, the commission warns that the strategy from 2011 onwards “may not be consistent” with recommendations from the European authorities.

“In particular, the deficit targets for 2011-2014 need to be backed up by concrete measures and the plans for the entire period need to be strengthened to address the risks from less favourable GDP growth and slippages on the expenditure side.”

The overall conclusion of a report prepared for economics commissioner Olli Rehn is that Ireland “responded swiftly and with determination to counter the widening of the Government deficit”. The “significant” size of the savings package for 2010 was broadly in line with the recommendation from EU finance ministers last December, it adds.

However, the report says the five-year strategy “may not be sufficient to bring the Government debt ratio back on a declining path by the end of the programme period” in 2014.

“The budgetary outcomes could be worse than targeted throughout the programme period, mainly due to (i) the fact that the consolidation efforts planned after 2010 are not underpinned by broad measures and are of an indicative nature only; (ii) the programme’s favourable macroeconomic outlook after 2010; and (iii) the risk of expenditure overruns in 2010 and also beyond, to the extent that the still to be spelled out strategy should rely on expenditure restraint.”

Given the likely need for further support for the financial sector, the report warns that the debt ratio could turn out higher than planned.

“It will be important to address the above-mentioned risks, by spelling out the measures underlying the consolidation strategy and adopting additional consolidation measures if growth turns out weaker than projected in the programme or if the risk of expenditure slippages materialises.”

A Government spokeswoman said Mr Lenihan notes “a call in the report for greater detail” in respect of future budget plans, adding that the commission made similar requests of other member states.

The Irish Times also reports that the Greek Premier George Papandreou appealed for EU support to help ease a crippling interest bill on its rising national debt as European Commission president José Manuel Barroso said the union’s executive was “ready” to introduce a rescue mechanism if needed.

As they met in Brussels, however, German chancellor Angela Merkel sought to puncture the urgency of the Greek debt crisis by dismissing the need for “a quick act of solidarity”.

Her remarks in parliament came only two days after euro zone finance ministers reached agreement in principle to organise emergency bilateral loans for Greece should the need arise.

With the power to approve any package in the gift of EU leaders, Dr Merkel’s stance reflects strong opposition to any Greek bailout within her own administration and among the German public.

Although the Greek debt crisis will inevitably surface at an EU summit this day week, the chancellor’s position suggests that an intervention is far from a done deal.

In a further sign that Germany is lukewarm on any EU rescue, the chief spokesman for Dr Merkel’s party suggested Greece should turn to the International Monetary Fund (IMF) if it needs help.

Such a stance is at odds with the thrust of last month’s pledge by EU leaders to intervene “if needed”.

As preparations for next week’s summit advance, talks on Greece’s position are set to intensify.

Still unresolved is the timing, interest rate, term and triggering mechanism for any special loans to Greece.

Responding to reporters’ questions last evening, neither Mr Papandreou nor Mr Barroso would be drawn on the timing of any decision to intervene.

Yet both leaders implied a certain urgency, with Mr Papandreou saying it remained open to his administration to tap the IMF for aid if such a requirement arose.

Stating that his austerity programme was ahead of target with the bulk of the enabling legislation already enacted, he said an interest rate in excess of 6 per cent on his country’s national debt raised serious “ethical” issues at a time when he was cutting public sector wages.

“If we are borrowing very high rates, there are other options. Nothing is excluded, but we’d prefer a European solution,” the prime minister said.

Although Mr Barroso stressed that Mr Papandreou did not ask for financial assistance, he said preparatory work within the EU executive was complete.

“We are working for this kind of mechanism. The European Commission is ready if needed to have such a European mechanism.

“We don’t know if it will be needed, but we are ready. The work is done.”

Dr Merkel said the euro is facing its “strongest” challenge, adding that the solution to the problem could only be found in the long-term stability of the currency.

“A quick act of solidarity is definitely not the right answer. Rather, the right answer is to seize the problem at the roots ... therefore there is no alternative to the Greek savings programme.”

The Irish Examiner reports that a number of British-based banks are seeking to recruit as many as 800 Irish bankers offering annual pay packets of up to €88,000.

The recent pick-up in the British economy and an increased focus on compliance is motivating banks to boost employee numbers, according to recruitment company Hays Ireland.

The majority of vacancies are for bankers with accountancy backgrounds, with salaries ranging between £50,000 (€55,000) and £80,000.

Hays Ireland managing director Richard Eardley said: "British banks are already feeling the first winds of recovery and in recent weeks we have seen a very significant increase in the demand for bankers.

"At the same time the increased focus on compliance means many firms are also beefing up their internal audit function."

While banks are often the first to lay off staff during a recession they are also the first to start hiring again.

Hays Ireland is seeking to fill 800 vacancies for the following positions: management accountant, financial accountant, lead financial accountant, financial accounting manager, financial control and reporting manager, internal audit, financial analyst, and senior financial planning and analysis.

"We have been given the very clear message that UK banks like Irish employees," said Eardley. "The banking systems are very similar so they know the skills of Irish applicants travel well."

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The New York Times reports that House Democrats are inching toward the majority they need to pass health care legislation, giving them added confidence as they work out the last details of the bill and gird for a showdown as soon as this weekend.

Behind the scenes, Democratic leaders were still working Wednesday to secure backing for the legislation from among roughly three dozen members of the party whose votes are considered to be in play, even as they awaited a final price tag on the bill from the Congressional Budget Office.

But they sought to portray the measure as gaining momentum from the public declarations of support from two Democrats: Dennis J. Kucinich of Ohio, who had previously opposed it, and Dale E. Kildee of Michigan, who had been among a group seeking tighter restrictions on the financing of insurance covering abortions.

Democratic leaders say they have not nailed down the 216 votes they need for passage, but they are pressing ahead in the belief that they can get them. The House Democratic leader, Steny H. Hoyer of Maryland, said the House could take a final vote on the legislation by Sunday.

The endorsement from Mr. Kucinich suggested that Democrats who have been pushing for more ambitious legislation might put aside their reservations and unite behind the bill as their best opportunity to secure health insurance for millions of Americans who now lack it. The backing from Mr. Kildee — and new support from nuns who lead major Roman Catholic religious orders — indicated that Democrats were having some success in addressing an issue that has cost the votes of some Democrats who oppose abortion rights.

But House Republicans said they still believed they could block the bill, a top priority for President Obama and Speaker Nancy Pelosi.

Under a two-step plan devised by House Democratic leaders, the House would approve the health care bill passed by the Senate in December, then make changes in a separate bill using a procedure known as budget reconciliation to avoid the threat of a filibuster in the Senate. Republicans like Representative David Dreier of California have accused Democrats of ducking a straight-up vote on the Senate bill, which has provisions that many House Democrats do not like.

In an interview with Fox News, Mr. Obama dismissed Republican criticisms of the parliamentary tactics, saying he does not “spend a lot of time worrying about what the procedural rules are.”

“What I can tell you is that the vote that’s taken in the House will be a vote for health care reform,” Mr. Obama said. “And if people vote yes, whatever form that takes, that is going to be a vote for health care reform.”

Mr. Obama likened the measure to fixing the financial system or passing the economic recovery act. “I knew these things might not be popular, but I was absolutely positive that it was the right thing to do,” he said.

Representative John A. Boehner of Ohio, the House Republican leader, said Republicans were engaged in a variety of activities to stir opposition to the health care bill in the home districts of Democrats considered vulnerable in the November elections.

“We are going to do everything we can to put the pressure on these guys because they are going to have to choose,” said Mr. Boehner. “Are they going to vote with Nancy Pelosi and the president, or are they going to vote with their constituents?”

“It’s going to be a wild ride,” Mr. Boehner predicted.

Besides securing commitments from Mr. Kucinich and Mr. Kildee, House Democratic leaders said they were pleased at the prospect of winning support from Representative James L. Oberstar, Democrat of Minnesota and an opponent of abortion.

John A. Schadl, a spokesman for Mr. Oberstar, said the congressman was “a strong likely yes” on the health care bill. Mr. Schadl said Mr. Oberstar was generally satisfied that the bill before the House would not allow the spending of federal money on abortion.

Democrats had hoped to unveil the text of the reconciliation bill on Wednesday afternoon, setting up the possibility of a decisive vote on Saturday. But they said that the Congressional Budget Office was still analyzing the cost of some provisions.

House Democratic leaders have promised that lawmakers would be given 72 hours to review the legislation before voting on it.

The No. 2 Democrat in the Senate, Richard J. Durbin of Illinois, said the Senate could pass the reconciliation bill as soon as next week if the House approves it over the weekend.

In announcing his support, Mr. Kucinich said he would keep working for a government-financed single-payer health care system. But after coming under intense pressure, which included a visit to his district on Monday by Mr. Obama, Mr. Kucinich said he did not want his objections to stand in the way of the legislation.

“If my vote is to be counted, let it count now for passage of the bill, hopefully in the direction of comprehensive health care reform,” Mr. Kucinich said.

Explaining factors he had considered in making his decision, Mr. Kucinich said, “We have to be very careful that the potential of President Obama’s presidency not be destroyed by this debate.”

“Something is better than nothing — that’s what I keep hearing from my constituents,” Mr. Kucinich said.

A last-minute hitch developed Wednesday over a couple of provisions of the Senate bill of great interest to organized labor.

One provision singles out the construction industry for special treatment, in a way that benefits union members and contractors who use union labor. It is unclear whether this provision will survive in the final package, and on Wednesday, Richard L. Trumka, the president of the A.F.L.-C.I.O., met with Mr. Obama at the White House to discuss the issue.

Labor leaders are also concerned about a provision of the Senate bill that would impose an excise tax on high-cost employer-sponsored health plans. In January, Mr. Trumka and the White House reached an agreement that would delay the tax to 2018 and reduce the number of health plans affected.

Republican senators said they believed they could successfully challenge the inclusion of that agreement in the final health care package, on the ground that it would violate the rules for budget reconciliation. If the compromise is dropped from the bill, labor groups and some of their allies on Capitol Hill would be much less supportive of the bill.

At the same time, Democrats said they were making progress on the divisive issue of abortion.

Mr. Kildee voted for the House health care bill in November, after Representative Bart Stupak, also a Michigan Democrat, won passage of an amendment imposing tight restrictions on insurance coverage for abortions.

Mr. Stupak has said he will vote against the Senate bill because he sees the restrictions on abortion as inadequate. But Mr. Kildee said he was satisfied that the provisions in the Senate bill would prevent the use of federal money for coverage of abortions.

“I have always respected and cherished the sanctity of human life,” Mr. Kildee said. “I spent six years studying to be a priest and was willing to devote my life to God.”

“I have listened carefully to both sides, sought counsel from my priest, advice from family, friends and constituents, and I have read the Senate abortion language more than a dozen times,” Mr. Kildee said. “I am convinced that the Senate language maintains the Hyde Amendment, which states that no federal money can be used for abortion.”

Mr. Stupak reiterated his opposition to the Senate bill, as did the United States Conference of Catholic Bishops.

But in a letter to House members on Wednesday, more than 50 nuns from various religious orders said, “The time is now for health reform, and the Senate bill is a good way forward.”

The NYT also reports that for years, many of China’s best and brightest left for the United States, where high-tech industry was more cutting-edge. But Mark R. Pinto is moving in the opposite direction.

Mr. Pinto is the first chief technology officer of a major American tech company to move to China. The company, Applied Materials, is one of Silicon Valley’s most prominent firms. It supplied equipment used to perfect the first computer chips. Today, it is the world’s biggest supplier of the equipment used to make semiconductors, solar panels and flat-panel displays.

In addition to moving Mr. Pinto and his family to Beijing in January, Applied Materials, whose headquarters are in Santa Clara, Calif., has just built its newest and largest research labs here. Last week, it even held its annual shareholders’ meeting in Xian.

It is hardly alone. Companies — and their engineers — are being drawn here more and more as China develops a high-tech economy that increasingly competes directly with the United States.

A few American companies are even making deals with Chinese companies to license Chinese technology.

The Chinese market is surging for electricity, cars and much more, and companies are concluding that their researchers need to be close to factories and consumers alike. Applied Materials set up its latest solar research labs here after estimating that China would be producing two-thirds of the world’s solar panels by the end of this year.

“We’re obviously not giving up on the U.S.,” Mr. Pinto said. “China needs more electricity. It’s as simple as that.”

China has become the world’s largest auto market, and General Motors has a large and growing auto research center in Shanghai.

The country is also the biggest market for desktop computers and has the most Internet users. Intel has opened research labs in Beijing for semiconductors and server networks.

Not just drawn by China’s markets, Western companies are also attracted to China’s huge reservoirs of cheap, highly skilled engineers — and the subsidies offered by many Chinese cities and regions, particularly for green energy companies.

Now, Mr. Pinto said, researchers from the United States and Europe have to be ready to move to China if they want to do cutting-edge work on solar manufacturing because the new Applied Materials complex here is the only research center that can fit an entire solar panel assembly line.

“If you really want to have an impact on this field, this is just such a tremendous laboratory,” he said.

Xian — a city about 600 miles southwest of Beijing known for the discovery nearby of 2,200-year-old terra cotta warriors — has 47 universities and other institutions of higher learning, churning out engineers with master’s degrees who can be hired for $730 a month.

On the other side of Xian from Applied Materials sits Thermal Power Research Institute, China’s world-leading laboratory on cleaner coal. The company has just licensed its latest design to Future Fuels in the United States.

The American company plans to pay about $100 million to import from China a 130-foot-high maze of equipment that turns coal into a gas before burning it. This method reduces toxic pollution and makes it easier to capture and sequester gases like carbon dioxide under ground.

Future Fuels will ship the equipment to Pennsylvania and have Chinese engineers teach American workers how to assemble and operate it.

Small clean-energy companies are headed to China, too.

NatCore Technology of Red Bank, N.J., recently discovered a way to make solar panels much thinner, reducing the energy and toxic materials required to manufacture them. American companies did not even come look at the technology, so NatCore reached a deal with a consortium of Chinese companies to finish developing its invention and mass-produce it in Changsha, China.

“These other countries — China, Taiwan, Brazil — were all over us,” said Chuck Provini, the company’s chief executive.

President Obamahas often spoken about creating clean-energy jobs in the United States. But China has shown the political will to do so, said Mr. Pinto, 49, who is also Applied Materials’ executive vice president for solar systems and flat-panel displays.

Locally, the Xian city government sold a 75-year land lease to Applied Materials at a deep discount and is reimbursing the company for roughly a quarter of the lab complex’s operating costs for five years, said Gang Zou, the site’s general manager.

The two labs, the first of their kind anywhere in the world, are each bigger than two American football fields. Applied Materials continues to develop the electronic guts of its complex machines at laboratories in the United States and Europe. But putting all the machines together and figuring out processes to make them work in unison will be done in Xian. The two labs, one on top of the other, will become operational once they are fully outfitted late this year.

Applied Materials has built a 360-employee operation here in Xian after announcing an 18-month program last year to reduce employment by 10 to 12 percent, or 1,300 to 1,500 jobs, including layoffs in the United States and Europe. Mr. Pinto said that the company was readjusting its work force as manufacturing shifted to Asia, but that the Xian facility involved a new approach to researching the design of an entire assembly line and was not replacing laboratories elsewhere.

Mr. Pinto is a well-known figure in Silicon Valley in his own right. While still a doctoral student at Stanford in the early 1980s, he wrote the first widely used two-dimensional computer simulation of how semiconductors work. This allowed engineers to test each one on a computer before building prototypes, shortening the semiconductor development process.

Later, he became a celebrated researcher at Bell Labs.

With China’s economy gaining strength, Mr. Pinto and his wife, then living in Santa Clara, began insisting in 2005 that their sons study Chinese once a week.

Now 10 and 11, the boys are improving their Chinese and mastering the art of eating with chopsticks.

Applied Materials has greater challenges, including fighting technological theft, a chronic problem in China.

The company has taken measures, including sealing its computers’ ports here, to prevent the easy use of flash drives to record data. Employees are not allowed to take computers from the building without special permission, and an elaborate system of computer passwords and electronic door keys limits access to certain technological secrets.

But none of that changes the sense that tectonic shifts are under way.

When Xei Lina, a 26-year-old Applied Materials engineer here, was asked recently whether China would play a big role in clean energy in the future, she was surprised by the question.

“Most of the graduate students in China are chasing this area,” she said. “Of course, China will lead everything.”