The Minister for Finance has accused Ireland's European critics of being jealous of the State's economic success and has insisted that he will not be rewriting his Budget - irrespective of the views of his fellow finance ministers next month.

Mr McCreevy said yesterday that there have been some "green eyes" cast upon the prosperity of the Irish economy and that the State's success in securing low rates of corporation tax to attract foreign investment was a particular bone of contention for other member-states.

"We have no friends in Brussels regarding our corporate tax regime or in any EU capital and this is creating the background music for what we are hearing now," he added. The European Commission has already delivered an unprecedented rebuke to the Government over the inflationary nature of the December Budget and a final decision on whether to issue a formal recommendation to censure Ireland will be taken by EU finance ministers on February 12th.

Mr McCreevy said that if there was a formal sanction, the Government would still not be changing the contents of the Budget. It would take what the EU had to say into account in the next Budget, he added.

The Commission said the 2001 Budget constituted a "major risk" to containing inflationary pressures in the Irish economy. Mr McCreevy noted that the censure was being recommended at a time when Irish inflation rates had begun to fall.

"The EU would like me to take money out of the Irish economy. It wants me to take a couple of million pounds out of tax reductions and expenditure but there is no question of rewriting the Budget," he said.

The Minister was addressing members of the Financial Services Industry Association, many of whom are based at Dublin's International Financial Services Centre, which enjoys a low-tax regime.

FSIA chairman Mr Roy Douglas took the opportunity to call on Mr McCreevy to reconsider the restoration of the ceiling on employers' PRSI contributions, warning that its abolition could threaten the competitiveness of the IFSC. The Minister insisted, however, that no changes would be made.

Meanwhile, the Tanaiste praised Mr McCreevy's stewardship of economic policy and said the EU Commission's decision was misguided. "Ireland's policies deserve applause, not reprimands. On this occasion I believe the Commission has misjudged the situation in Ireland." Ms Harney added that Government economic policies would curb inflationary wage demands by delivering tax cuts to employees through social partnership.

The Irish Business and Employers' Confederation described the Commission's criticism as "excessive and alarmist".

Mr McCreevy said he was annoyed that the economy which had the highest growth rate, second-lowest national debt, a falling inflation rate and almost full employment was facing censure. He insisted that any censure by the EU would not be binding as budgets were a matter for individual member-states to frame, according to economic circumstances.