The Minister for Finance Mr McCreevy has described as unwarranted the recommendation by Europe's finance ministers to reprimand the Government over failure to comply with EU economic policies.
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Mr McCreevy: has defended Ireland's position
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At an EcoFin meeting this morning, the EU Finance Ministers voted to reprimand Ireland on an unspecified date in the future for fiscal and economic policies that the Commission believes to be inflationary.
In his address to the meeting, Mr McCreevy also expressed his "deep concern" at the public manner in which the debate had been conducted by the Commission and said it was "unacceptable" for drafts of the recommendation to be published in advance of this morning's vote.
However, Mr McCreevy denied that the Government's policies are inflationary and said that "there are no reasonable grounds for such a recommendation in relation to the broad Economic Policy Guidelines."
He said the Government had sought to achieve economic stability in the December budget and the concerns expressed in the draft recommendation were "based on the wrong premise".
"The Commissions assessment and the Broad Economic Policy Guidelines advises Ireland to seek to achieve economic stability", Mr McCreevy said.
"This is exactly what the Irish Government has sought to do in the Budget.
Mr McCreevy denied the Government has ignored repeated warnings from the Council and continued on an expansionary course, and said the Commissions' own calculations do not support this.
Mr McCreevy told the meeting that the latest figures show that inflation has fallen from 6 per cent in November to 3.9 per cent now.
"I have no problem with advice to Ireland setting out the Councils view of the appropriate policy mix for the future," Mr McCreevy added.
"This can take the form of an opinion, as is the normal course. "It is very difficult for me, in the light of the comparative performance of the Irish economy, to see that any recommendation is warranted."
Despite broad support for the reprimand against Ireland there is mounting criticism among member-states of a Commission proposal to further harmonise economic policy in the euro zone.
Meanwhile, the Tánaiste, Mary Harney has said she fully backs the stand taken by Mr McCreevy.
Saying that she regrets the reprimand decision, Ms Harney said: "Now it's time to move on and continue to work on the common purpose we share with our EU colleagues - development of the European economy, completing the Single Market for the benefit of EU consumers, enlargement for the purpose of peace and stability across the entire European continent, and ratification of the Nice Treaty. "I have made a positive suggestion for enhancing the construction dialogue between Ireland, the EU Commission and other member states on small, open economies in the EU. I look forward to discussing these and other matters of common interest with Commissioner Solbes when we meet next week in the course of his visit to Ireland."