McCreevy to hold key post at heart of European economy

The Minister for Finance, Mr McCreevy, has secured a powerful economic post in the new European Commission as its incoming president…

The Minister for Finance, Mr McCreevy, has secured a powerful economic post in the new European Commission as its incoming president moved to put economic reform at the heart of his agenda, writes Arthur Beesley, Political Reporter.

Mr José Manuel Barroso nominated Mr McCreevy as Commissioner for Internal Market and Services, one of four crucial economic jobs in the EU executive, and said he aimed to give "new impetus to Europe's economy".

The Taoiseach, Mr Ahern, welcomed the appointment to a portfolio used in the past to lay the groundwork for the European single market and ultimately the introduction of the euro.

The job will see Mr McCreevy take responsibility for further economic reform through the expansion of the European single market into the area of financial services.

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"This is a challenging and exciting post that will be of great importance over the coming years to deepening the internal market, especially in the area of services," Mr Ahern said.

"The importance of creating a real internal market, across all sectors, in both goods and services, is vital to both business and job creation in Europe.

"It is even more important now following the enlargement of the union to 25 member-states that we create a level playing field which will allow business to trade freely throughout the union."

Mr McCreevy said he was particularly pleased to have been allocated the portfolio, which was "very significant" in the context of the enlargement of the union. The area of services was particularly important, and would make a significant contribution to the creation of a genuine single market.

The appointment, which will take effect in November, is seen as a recognition of Mr McCreevy's stewardship since becoming Minister for Finance in 1997.

He will step down next month, ahead of a Cabinet reshuffle in which Mr Ahern is expected to appoint Mr Brian Cowen as minister for finance.

Fulfilling his commitment to be an independent leader of the commission, Mr Barroso largely denied the big member-states the jobs they had sought, and chose instead to give the main economic portfolios to the Netherlands, Ireland, Germany and Britain.

Promising a "strong, independent and credible" commission, he said he would take personal charge of the Lisbon competitiveness agenda, the reform package that seeks to turn the EU into the most competitive economic zone in the world by 2010.

This follows the failure of the outgoing commission to secure decisive backing for the process from national capitals.

Former Dutch minister Ms Neelie Kroes will be put in charge of the sensitive competition directorate. She follows Mr Mario Monti of Italy, who won a reputation for his high-profile fight against illegal state aid, anti-trust abuses and anti-competitive mergers.

Britain's nominee, Mr Peter Mandelson, will be the new trade commissioner, while Mr Günter Verheugen of Germany was named vice-president of the commission, in charge of industry and enterprise.

His tasks will involve co-ordinating policies on competitiveness, and working closely with Mr Barroso on implementing the Lisbon agenda.

The Fine Gael spokesman on enterprise trade and employment, Mr Phil Hogan, said Mr McCreevy's post had responsibility for important areas of consumer interest.

Labour's deputy leader, Ms Liz McManus, said it was clear that the post was significant and prestigious with responsibility for an important area of EU work.

"I hope that Mr McCreevy will now use his new appointment to implement policies that will promote the interests of the consumers and workers of Europe, rather than simply big business," she said.

The Greens' finance spokesman, Mr Dan Boyle, said: "Given his ideological bent as minister for finance, we hope that a less equal Europe, especially in relation to the accession countries, won't be the result of Charlie McCreevy's term in European office."

Sinn Féin TD Mr Caoimhghín Ó Caoláin said Mr McCreevy should use his new job to promote economic integration on the island of Ireland.