The Minister for Finance, Mr McCreevy, last night confirmed that the Government will fight attempts by the European Commission to retrospectively claw back from businesses the value of rent and rates allowances granted in the Custom House docks since 1993.
Mr McCreevy said it was now "highly unlikely" that approval will be given for continuation of the allowances by the Commission when it meets today. He said that the Government understood that reality but rejected the idea that such allowances were illegal since 1993, when permission for them ran out and was not resought.
Commission sources said that a meeting of chefs de cabinet yesterday which was preparing today's Commission meeting had agreed to launch infringement proceedings against Ireland over the post-1993 allowances. It had also agreed to the continuation of capital allowances in the Custom House docks scheme and its 12-acre extension.
Mr McCreevy was attending a meeting of EU Finance Ministers which approved with virtually no discussion Ireland's Stability Programme. The approval of the programme, which sets out the Government's deficit targets for the next four years, is part of the state's obligation as a member of the single currency group.
At the same time, the European Central Bank President, Mr Wim Duisenberg, said the international economy appeared uncertain but Europe was not heading for recession. Appearing before a European Parliament sub-committee, he said he saw no deflationary or inflationary signs, suggesting current interest rate levels were appropriate.
"We have carefully analysed all available data. There is no suggestion we have entered a deflationary phase," he said.
In further testimony, Mr Duisenberg also reaffirmed his opposition to currency target zones, but said the ECB would pay attention to the euro's exchange rate as a policy indicator.
Finance ministers also discussed a Belgian proposal to bring forward by a year to January 2001 the launch of euro coins and notes. Mr McCreevy said that the clear majority view was that only an overwhelming case would justify such a change, and that simply did not exist. He warned that such a move could create uncertainty.
Belgium's Minister, Mr JeanJacques Viseur, however, said the obstacles to an earlier introduction should not be over emphasised.
"I'm convinced that our citizens expect us to be open to their wishes and want us to at least make a serious effort to examine the feasibility of the idea," he told reporters.
"There is momentum behind this, but we should not ignore that a procedure has been decided and that the business community is considering the decisions we have taken," said the Luxembourg Prime Minister, Mr Jean-Claude Juncker. "But, if it were possible, we would certainly support it."
