Brendan Howlin rejects EU criticism of budget decisions

Minister for Public Expenditure Brendan Howlin has rejected criticism by the European Commission that expansionary budget decisions could threaten Ireland's economic recovery.

Mr Howlin said on Sunday the commission’s report should be read in full, claiming it had been selectively quoted.

“It is, by and large, very supportive of the journey we have taken and has determined, as a matter of law, that we are in compliance with the stability growth pact,’’ he said.

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

Mr Howlin insisted “a balanced presentation’’ of the report revealed Ireland’s economic rebound was remarkably strong and underpinned by an ongoing successful macro-economic adjustment.

Speaking on the RTÉ Radio programme This Week, Mr Howlin said the Government was criticised if it spent too much and also criticised if it did not spend enough.

He added the International Monetary Fund, in its most recent assessment, had said it was appropriate to use some of the fruits of the recovery to address problems built up during the difficult years. “I think that is important,’’ he added.

Mr Howlin said Ireland had made a remarkable journey in the past five years, from a broken economy.

He said he would like if more was spent on infrastructure, but the Government would be prudent in anything it spent to meet the demanding targets it had set itself.

“We have exceeded them in every step of the way so far,’’ he added. “That will be the hallmark, if we are fortunate enough to get the support of the Irish people.’’

Mr Howlin said the Government had made a decision last year to increase targeted expenditure in areas such as health and to give a social welfare Christmas bonus.