Charlie McCreevy Aims To Balance Budget This Year

by Jason Gorringe, Tax-News.com, London

11 October 2002

Irish Finance Minister, Charlie McCreevy announced on Tuesday that despite the recent relaxation of the terms of the EU Stability and Growth Pact, the Irish budget 'will be framed against a background of a balanced or close to surplus situation'.

Despite the Republic's recent highly publicised economic woes, Mr McCreevy argued that it was not in Ireland's interests to begin running up its substantially reduced national debt again. However, he made it clear that these remarks were not intended as a criticism of larger EU member states such as France, Italy, and Germany, explaining that: 'The same economic textbook does not apply to Ireland and Germany'.

The Irish Finance Minister went on to suggest that the recent decision to extend the period granted to the aforementioned member states for bringing their budgets into balance, was a 'pragmatic approach', and that there would be no benefit in forcing the three countries - which account for more than 75% of the eurozone economy - to adopt measures which would ultimately constrain growth and delay their economic recoveries in the long-term.

Despite Charlie McCreevy's diplomatic silence, recent reports have revealed that France's refusal to agree to reduce its budget deficit by a minimum of 0.5% next year caused massive controversy at the Econfin meeting in Luxembourg this week. French Finance Minister, Francis Mer announced on Monday that his government was not prepared to give any ground on the issue, explaining that it had 'other priorities', primarily bolstering economic growth.

Recommended