THE EUROPEAN Commission has withheld judgment on the Government’s decision to make a €15 billion budget “adjustment” to the public finances in the next four years, saying its role was not to assess the size of the overall package.
Economic and monetary affairs commissioner Olli Rehn would not deliver any assessment on the plan until the Government sets out all measures, his spokesman said yesterday.
He insisted the European authorities did not impose the budget figure on the Government, and declined to say what message Mr Rehn would relay to the Opposition parties and social partners when he meets them next month on his visit to Ireland.
While the declaration of the €15 billion target surprised some close observers of the Irish situation, others see the publication of the figure as a political manoeuvre to prepare the public for drastic measures when Minister for Finance Brian Lenihan sets out detailed policies.
“Indeed we have seen the announcement by the Government on the size of the cuts for the coming four years,” Mr Rehn’s spokesman told reporters. “You know that the commission’s role is to assess the multi-annual plan in its concrete measures, and to assess in particular if the measures foreseen year by year, sector by sector are the ones which enable Ireland to meet its targets as agreed with its European partners until 2014. Our role is not to assess on the size on the figure but on the package, on the multi-annual plan as a whole, which has not been presented yet – and that will be in November.”
He was dismissive when asked if Brussels had imposed the €15 billion target on the Government, a question posed yesterday by Fine Gael leader Enda Kenny.
“I don’t know who you could be referring to when you use the verb ‘imposing’. There is no imposition whatsoever, at least from the European institutions. There is an agreement. Ireland has agreed to certain budgetary targets under the excessive deficit procedure with its European partners, not only with the commission.”
He acknowledged Mr Rehn’s plan to visit Ireland but said it would be inappropriate to relay his message in the press in advance of his arrival.
“This is, by the way, why he is going to Ireland too because he wanted to talk directly to all, let’s say, the main players, the Government, but also the political parties about the current situation; to explain clearly what the commission’s role is in this; precisely to avoid misinterpretations such as the one you were transmitting to me and that’s it.”
