Echoing comments made earlier in the week, Ireland's Minister for Enterprise, Trade and Employment, Mary Harney, has called for a relaxation of the European Union's growth and stability pact rules to allow scope for extra borrowing.
Harney earlier this week criticised the inflexibility of the pact, which she considers is stunting the growth potential of the EU. Whilst stressing that fiscal responsibility was of utmost importance, the Tanaiste said that extra borrowing should be allowed to fund further capital development.
In Ireland's case, extra borrowing could be justified due to the country's low debt rate, according to Harney. The strict EU debt rules should only apply to those countries with high rates of debt to prevent them from borrowing more, she suggested.
Harney revealed that the government would like to borrow in order to fund certain transport and telecom infrastructure projects, although she stressed there would not be a return to the spending practices of the 1980's which left the nation close to bankruptcy.
A number of countries have already come unstuck as a result of the growth and stability pact, with both France and Germany breaching the 3% of debt to GDP limit in the past year.
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