European Economic and Monetary Affairs Commissioner Joaquin Almunia today backed a compromise proposal on EU budget rules.
Under the Irish proposal, member states, not the European Commission, would decide what measures a country should take to reduce an excessive deficit.
"Broadly I think that the Irish compromise is a very, very good base for an agreement, and I hope that this agreement will take place tomorrow," Mr Almunia said on arriving for a meeting of Socialist leaders ahead of an EU summit due to conclude a constitution for the bloc.
He was referring to a proposal under which the Commission would determine whether or not a state had exceeded the EU deficit ceiling of 3 per cent of gross domestic product but member states would decide on recommendations to that country.
The compromise was widely seen as a victory for EU deficit sinner Germany, which sought to weaken the Commission's powers to enforce EU fiscal discipline.
