In Brussels tonight, there are indications that the European Commission plans to formally reprimand the Government over its inflationary budget policy. The issue is due to be discussed at tomorrow's meeting of the 20-member Commission. It is understood the Commissioner for Economic Affairs, Pedro Solbes, will recommend that Ireland should be censured for policies in the December budget which appear to breach the EU's broad economic guidelines, as defined by EU Finance Ministers, including Charlie McCreevy.
If the Commission presses ahead with plans to issue a recommendation against Ireland, this will be the first such decision since the launch of the EU's single currency in January 1999. Last week in Brussels Mr McCreevy pointed out that Ireland has the fastest growing economy in Europe and that the December figures showed our inflation rate was falling. He also suggested that many outside observers will be amused and amazed if the Commission opts to move on formally reprimanding the Government.
