Tánaiste defends Coalition against budget criticism in EU report

Tánaiste Joan Burton has defended the Government against criticism by the European Commission that expansionary budget decisions could threaten Ireland’s economic recovery.

A draft of a commission staff paper analysing the State’s post-bailout performance has claimed recent economic decisions had been influenced by political considerations.

It also referred to a dependence on “strong but generally volatile corporate taxes”.

Ms Burton said reports of the leaked document had focused on negative aspects but the report had also praised Ireland's economic rebound as "remarkably strong".

Speaking during Leaders' Questions in the Dáil yesterday, Ms Burton said: "All such reports have issues to raise and want to look forward to risks in the future which is reasonable and prudential. I have no issue with that. However, these comments recognise that Ireland has achieved a remarkable turnaround and it is the job of the Government to ensure that the recovery that has been made to date is not only sustained but grown."

She was replying to Social Democrats co-leader Stephen Donnelly, who said the Government's pre-election politics had been taken "straight out of the Fianna Fáil playbook".

He said if there was a global economic shock Ireland could be more vulnerable than it had been in 2008.

Other Opposition parties also criticised the Government on foot of the report.

Renua Ireland deputy leader Billy Timmins said: “Ireland appears now to be in real danger of returning to the bad old politics of boom and bust.”

He said it was significant that the report echoed Fiscal Advisory Council criticism.

“Comments that the budget was aimed at re-election as opposed to securing the recovery is in sharp contrast to Government rhetoric,” he said.