EU economics commissioner Moscovici refuses to comment on troika spat with Irish Government

EU economics commissioner Pierre Moscovici has refused to comment on reports that the Irish Government had reprimanded the European Commission over its intervention in the Irish Water dispute, saying he had set out his views in a letter to Minister for Finance Michael Noonan.

Speaking Monday in Brussels at a meeting of euro zone finance ministers, Mr Moscovici said the commission would publish its full post-programme surveillance report on Ireland early next year.

“I have no further comment to make on that today. I answered that very clearly to Michael Noonan,” he told reporters.

It is understood that the issue of water charges or the need for further fiscal measures were not discussed during Monday’s scheduled euro group discussion on Ireland.

Euro zone finance ministers received an update on the latest post-programme visit to Dublin, but sources said the controversy over changes to water charges was not raised.

Praise for Ireland

Both Mr Moscovici and ECB president

Mario Draghi

are understood to have strongly praised Ireland’s economic performance during the discussion, with Minister of State for Finance

Simon Harris

representing the Government.

As reported in Monday's Irish Times, senior Government officials severely criticised troika inspectors at a meeting in Dublin, the day after the European Commission questioned the new water regime. Mr Noonan is understood to have raised the issue in a letter to Mr Moscovici.

Speaking before the euro group meeting, Mr Harris said it was “a matter of course for the Minister of Finance to revert to the commission in writing” after a troika visit. He noted that approximately 44 different meetings had taken place at an official level as part of the latest visit by troika officials to Dublin.

Mr Harris said he was not aware that any planned meeting had been cancelled as a result of the heated meeting between troika and Government officials.

“I’m certainly not aware that it was,” he said. “But the purpose of the meeting was official to official, and once you’re out of a programme it tends to be done at an official level. Our officials engaged extensively with representatives of the troika.”

Separately, asked about the likelihood that junior bondholders of the defunct Anglo Irish Bank would be paid, Mr Harris said it was "highly unlikely."

“The situation with this hasn’t changed legally or from a policy point of view at all. All that’s changed is a parliamentary question that was asked by the Sinn Féin spokesman on finance, and the Minister for Finance outlined the legal and factual position. The junior, subordinated bondholders, by the virtue of them being subordinate, are at the very bottom of the pile.”