EU ECONOMICS commissioner Olli Rehn wants to discuss all aspects of the four-year economic plan “in detail” when he meets Minister for Finance Brian Lenihan in Dublin on Monday evening.
Mr Rehn’s spokesman declined to offer any opinion yesterday on the Government decision to delay publication of the plan until after the Donegal South West byelection at the end of the month, but said the matter would be addressed during the meeting with the Minister.
“I can’t comment at this point in time. I think it is really important that direct talks take place next Monday and Tuesday.”
Without specifying any date, the Government previously indicated to the commission that it would unveil the plan in early November. Two days ago, Mr Rehn said the adoption of a €6 billion target for the 2011 was appropriate, but warned that further difficult decisions remained to be taken.
The commissioner and Mr Lenihan are scheduled to meet for about two hours on Monday evening at the Department of Finance, after which they will conduct a joint press conference.
On Tuesday morning at the commission’s Irish office in Dawson Street, Mr Rehn will meet representatives from Fine Gael, Labour, Sinn Féin, business lobby Ibec and the Irish Congress of Trade Unions. He is also meeting Central Bank governor Patrick Honohan and will give a speech in the afternoon to the Institute of International and European Affairs.
As Irish borrowing costs remained at near-record levels yesterday, Mr Rehn’s spokesman declined to comment on “short-term” market developments.
“We do comment and we do assess political decisions concerning the public finances of member states, especially those who are in an excessive deficit procedure, also concerning other decisions concerning structural reform, for instance. These are for us the main reference for our economic analysis, certainly not short-term movements in the markets,” he said.
“Mr Rehn wants to discuss in detail all the elements in and around the four-year plan,” he added. He also pointed to the requirement for structural reforms, noting that this had not yet been underlined in press reports.
Mr Rehn will be accompanied on his Irish visit by two officials from his private office – Stéphanie Riso, deputy head of cabinet with responsibility for economic surveillance in Ireland and seven other countries; and Anna-Kaisa Itkonen, whose responsibilities include oversight of the commissioner’s communication and information strategy.
Meanwhile, Labour finance spokeswoman Joan Burton said last night the Government’s plan to cut €6 billion from the economy would kill jobs and growth.
“They want to take €6 billion – about 4 per cent of GDP – out of the economy this year, and think that the economy will still grow by nearly 2 per cent. The numbers just don’t add up. I don’t believe them.
“The Financial Times thinks they’re baloney, and the markets may well find them tough to swallow too,” said Ms Burton.
She was speaking at a Labour event in Borris, Co Carlow, where she confirmed the party would limit its fiscal adjustment to €4.5 billion in 2011.
