FINE GAEL leader Enda Kenny has warned against any EU agreement on financial rules that could result in Ireland losing its voting rights.

Mr Kenny pointed out “it is important to say that the Irish people gave Europe the Lisbon Treaty. It is important to understand that as a consequence of that, the institutions Europe requested . . . were given to the union by the Irish people.”

Taoiseach Brian Cowen said such a move would only be used “as a last resort” and there was little support for the idea at the EU leaders’ meeting.

Mr Kenny was concerned that the situation for Greece and its position was “to say the least, difficult” although it might be possible to resolve the collapse of the talks in Portugal between the government and opposition about reducing Portugal’s deficit to 4.6 per cent. He said however: “I would like to make clear to the Taoiseach that I could not support Ireland agreeing to a change that would result in its voting rights being withdrawn. I hope this will not be on the table. I believe that would be catastrophic and it would have my outright opposition.”

He was referring to discussions at the EU leaders’ meeting that if any member state persistently flouted financial regulations, penalties including the withdrawal of voting rights could be imposed.

Mr Cowen said the suspension of rights in certain circumstances is used only as a matter of last resort such as in regard to a permanent disregard by a member state to deal with the issues with which it is entitled to deal in terms of its membership of the currency or Stability and Growth Pact.

The conclusions at the meeting allowed for EU president Herman Von Rompuy “to undertake a separate and subsequent exercise beyond December to look at that issue. It is fair to say there was little support for the idea around the table.”