Eurostat Deals Budget Blow To Charlie McCreevy

by Jason Gorringe, Tax-News.com, London

24 July 2002

It emerged on Monday that Eurostat, the European Union's statistical office has disallowed Irish Finance Minister, Charlie McCreevy's budgetary decision to transfer profits arising from the sale of notes by the Central Bank to financial institutions during the euro changeover this year to the Exchequer.

The UTV Internet news service reported earlier this week that the windfall - made up of £154 million (240 million euros) from the changeover to euro notes, and £237 million (370 million euros) from the issue of the new coins - had been earmarked by the Finance Ministry to partially offset the increasing tax shortfalls observed so far this year.

However, the statistical body has ruled that the gains were 'exceptional', and cannot be used by eurozone finance ministers to decrease their deficits or boost their surpluses, according to UTV News.

A spokesman for Mr McCreevy told the news service that the decision had not come as a great surprise to the Finance Ministry, and expressed the belief that there will still be an overall surplus for this current year.

Prime Minister, Bertie Ahern and Deputy Prime Minister, Mary Harney both announced their support for the Finance Ministry's stance, with the Taoiseach asserting this week that:

'I understand it will not create any great difficulties, although it makes a small difference to the general government deficit.'

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