MINISTER FOR Finance Brian Lenihan insisted last night he is under no pressure from the EU Commission to take new measures this year to ease the budget deficit.
Making little of suggestions by EU economics commissioner Olli Rehn that Ireland will be “in focus” as the commission reviews European economies next month, the Minister said no concern has been communicated to him or the Government.
Mr Rehn said on Tuesday that the EU executive is “certainly looking to Ireland” as it reviews whether additional austerity measures will be needed.
However, Mr Lenihan told reporters last night in Brussels that Mr Rehn can’t “rule out any member state” before the review is completed.
“Let’s have a little bit less of the Skibereen Eagle here. He’s the commissioner who is responsible for 27 member states. He cannot say to one member state on the margins of a press conference that ‘oh well of course Ireland is so good we’re not even looking at it’. Of course he has to look at every member state.
“Of course Ireland will be examined and I look forward to that examination. I’ll be engaging with him on it.”
“ There’s been no particular concern conveyed to Ireland about the envisaged consolidation.
“We’re on track this year. And any time he had an opportunity to particularly refer to Ireland, he said the Irish were the first off the mark. He agrees that the economy is turning and, in his more general remarks on the European economy generally, he said that any consolidation efforts must be balanced with the need not to stop any economic recovery. That’s what he said.”
Mr Lenihan was speaking at the end of a meeting in which EU finance ministers discussed measures to intensify budgetary surveillance and co-ordination. New measures should be executed within the existing treaties in the first instance, he said.
“What I do not want here is some sort of prolonged ratification procedure, stemming from far-reaching treaty changes. That’s not saying that Ireland is ruling out treaty changes because I want to be clear on that. But we frankly believe that it’s very important that this task force report quickly on practical changes within the existing treaties and, if there are any treaty changes, that they’re more technical in character and therefore capable of rapid ratification.”
Mr Lenihan had no concern that Ireland could face fines following moves to back a stiff sanctions regime and was comfortable with measures to broaden the scope of indicators reviewed in the EU stability and growth pact, which governs the euro.
Graduated sanctions would be required, he said. At all stages, he added, the commission expressed “complete satisfaction” with measures taken by the Government to regain control over the public finances.
