Extension of Irish deadline shows realism, says Day

MARY MINIHAN in Brussels

SECRETARY GENERAL of the European Commission Catherine Day said the commission was “showing realism” by extending by one year until 2014 Ireland’s deadline to restore stability to the public finances.

Ms Day said the proposal for extra time would be examined for approval by the council of finance ministers on December 2nd.

She said the majority of countries had until 2012 but because the economic crisis had hit Ireland and the UK so severely the proposal for those countries was 2014. “Even 2014 is going to create a squeeze,” she said.

Asked if she thought the extended deadline was achievable, Ms Day said: “It’s going to be tough to get there but it’s a reasonable period of time. It’s very reasonable compared to the limits that are being asked of the other member states.”

Ms Day confirmed that talks had taken place with officials in Ireland. “In the case of Ireland with the budget coming, it’s important even if officials can’t tell you everything that’s going to be in the budget, it’s important to know the direction of Government policy and to try to make sure that what we recommend is realistic.”

Ms Day said she did not know why her name had been mentioned as a possible contender for Ireland’s new commissioner. There was never any foundation to the speculation, she said.

She said when people engaged in such speculation they did not understand the system and the Irish system in particular.

In Ireland’s case, the position had always gone to a political figure and she was a civil servant and happy in her role.

Asked if she believed she was ever in contention for the position, Ms Day said: “No, and I wouldn’t ever want to be.”

Meanwhile, the Irish Congress of Trade Unions (Ictu) said yesterday the European Commission decision was “both a vindication of the congress demand for a longer adjustment period and proof that Government policy is driving the economy into the doldrums”.

Ictu economic adviser Paul Sweeney said: “As the commission has now acknowledged, the Irish economy does not have the capacity to absorb the deep, deflationary cuts planned by Government.

“We may differ on the timeframe, but we are agreed on the principle.”