Europe took us to task this week over what it sees as an irresponsible expansionary budgetary policy. The censure was delivered by the EU Commission at the hands of Economic Affairs Commissioner Mr Pedro Solbes. Days earlier the Finance Minister, Mr McCreevy, was dismissing the possibility of the euro's tiger cub economy being first to face a ticking off. When the admonition arrived, he went to ground, albeit temporarily.

While the censure drew howls of protest in Dublin from the Government and the social partners, further afield, it was seen as justified. Ireland may have the brightest economy in the Continent but, increasingly, it has been seen as building up potential problems for the future. Although the EU cannot punish the errant Irish as a result of the decision, which is likely to be confirmed by Mr McCreevy's fellow finance ministers when they meet next month, it can make life difficult for the Irish in Europe. To what extent Mr McCreevy has compromised our goodwill in Europe is a moot point. But whatever the cost, it is unlikely he will tone down his contributions or his faith in his policies.