The Tánaiste, Ms Mary Harney, has come out strongly in defence of Mr Charlie McCreevy's Budget 2001, which was the subject of EU sanctions today.
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Ms Mary Harney:
"Ireland deserves applause, not reprimands" |
Ms Harney said she "regretted" the view taken by the EU Commission on the Minister for Finance's policies, claiming that Ireland's budget "deserved applause, not reprimand."
"I believe the commission has misjudged the situation in Ireland. The Irish economy is one of the most dynamic in Europe," she said.
Ms Harney argued that Ireland has the best job creation record in Europe, is actively reducing poverty, has one of the healthiest budget surpluses among all 15 member-states and also the second lowest national debt in Europe, second only to Luxembourg.
In addition, Ms Harney claimed, Mr McCreevy's budget would ensure inflation control by restraining wage levels, granting tax cuts to the lower-paid and liberalising the economy to open up supply and keep the market competitive.
"Our policies are delivering the objectives that the EU monetary union and single market programmes are aimed at: sound finances, sustainable jobs, dynamic enterprises social inclusion and consumer welfare.
"And all this in the context of prudent management of the public finances," she said.
Ms Harney's comments came after a 20-member Commission meeting in Brussels earlier today, which ruled that Ireland had breached agreed EU economic policy guidelines, the first time it its history the Commission has singled out a member country for censure.
Ireland now has the euro-zone's highest inflation rate at 4.6 per cent in 2000, which is coupled with a record growth rate of over 10 per cent.
