Not for the first time Mr Kenny barricaded himself in his room and refused to answer senior Fine Gael colleagues who tried to convince him that today is the day he will become Taoiseach.

Labour leader Eamon Gilmore also implored Mr Kenny to come out of his room to no avail.

Finally, Taoiseach Brian Cowen was able to persuade Mr Kenny to leave his bedroom and form a government. “I can’t believe it either but it’s true. You really will be Taoiseach of the 31st Dáil,” he apparently told him.

The light appeared after it became clear that Labour would be in government with Fine Gael and it has been getting stronger with every passing day.

Understandably, many analysts thought the light at the end of the tunnel meant the economy had turned a corner. “We’ve been looking for it for so long we got over-excited,” a source said.

“It’s just like the sun,” he added. “It’s very bright and you can bask in it.”

“This is a crazy game of bluff,” an analyst said. “They’re playing Russian roulette with a fully loaded gun.”

“Either one of them could do it,” another analyst said. “This can only end badly.”

Sources within the EU and the IMF promised to do their best not to accept a return of the bailout funds. “We will do what we can,” they said. “We have your interests at heart.”

The move follows the party’s poor performance in opinion polls which show Labour as the biggest party in the State.

Current leader Enda Kenny is to be a guest judge although his vote will not count. “We had to do something to stop him auditioning,” a source said.

The source say Kenny will be allowed to keep the title of Taoiseach in Waiting and will not be told that he is no longer party leader. “It’s not as if anyone listens to him,” he said.

Apparently the X Factor judges asked for footage of charismatic former leaders and front bench members of Fine Gael before deciding to broaden their search.

“We’re looking for someone like Ronan,” Louis Walsh said, worryingly.

A spokesman for the Department of Finance was quick to pour scorn on the suggestion saying that the Cabinet had not considered the idea.

Fine Gael, Labour Fianna Fail and Green Party TDs were also quick to distance themselves from the suggestion. “What is he playing at? Is he trying to bring politics into repute? The public will never buy it,” one TD said.

However, seasoned observers of Leinster House said the issue was a storm in a tea cup. “It’s just talk,” one observer said. “There won’t be any real help for homeowners. No one is going to bring politics into repute.”

“Mr Cowen is worried that the legislation introduced by Mr Ahern could effectively make it illegal to be leader of Fianna Fail or the Government,” an aide to Mr Cowen said. “He is wary of Mr Ahern’s motivation in bringing forward the legislation. This could be a very Irish coup.”

It is understood that the leaders of the Green, Labour, Fine Gael and Sinn Fein parties and their advisers are also monitoring developments. There have been unconfirmed reports that some party leaders are preparing to take flight before the Gardai come calling.

Under the legislation an actual crime does not have to be committed to invoke the commission of the offence. It allows for the criminalisation of controlling a criminal gang of three or more people. As such it is of no real concern to the Progressive Democrats.

In the face of the onslaught from Fine Gael and Labour Mr Lenihan resorted to the delusional stance of stating that the report represented an endorsement of current Government policy.

“This is clearly nonsense but he had to say something,” a Finance Department source said. “To be honest he doesn’t know where the opposition are coming from on this. I mean, there are no jobs out there. What class of eejit would resign from a well paid job at a time like this?”

“This is not the time for a career change. It’s time to sit tight and try not to draw attention to yourself,” the source added.