Plans to reform European Union rules governing member states borrowing are likely to ease restrictions and give the Minister for Finance, Mr McCreevy, more scope for running a deficit when he announces the Budget next week.
Euro-zone treasuries must stick to agreed public debt and deficit limits, but the European Commission has been embarrassed by having to threaten sanctions against such economic giants as Germany and France for failing to meet requirements.
The new proposals will take account of eurozone members' individual requirements which could lead to Ireland being allowed to borrow more to address the State's significant infrastructure deficit.
Ireland has one of the lowest debt levels in the EU - less than 35 per cent of Gross National Product. This is likely to be Mr McCreevy's strongest bargaining chip if he seeks to increase borrowing to pay for projects that have an economic return. Road, rail and telecom network investment fits that criteria.
Commission President Mr Romano Prodi hs said the so-called Stability and Growth pact was "stupid" because it is too inflexible - and now his monetary affairs chief Mr Pedro Solbes is proposing to move the goalposts.
The Commission has decided that the system is more to blame than the dozen EU member states which have to apply it.
And while the basic benchmarks remain - public deficits no higher than 3 per cent of GDP and public debt limited to 60 per cent of GDP - the pact will take more account of the realities of differing economic cycles in individual countries.
Under the current system the Commission has had to threaten sanctions against Germany, France, Belgium, Greece, Italy and Portugal.
Under the new proposals, which need EU government approval, Brussels will still have power to act against countries with poor public finances. But the hope is that such politically-awkward occasions will be far fewer in a centralised system with more room for member state finance ministers.
Additional reporting PA