PRESS RELEASE : Brussels rebukes booming Ireland (2001)

The press release issued by the Conservative Party on 13 February 2001.

Brussels rebukes booming Ireland

Irish rebuke by the European Commission gives valuable ammunition to British opponents of the euro

OPPONENTS of British membership of the euro were given valuable ammunition yesterday when Ireland was “reprimanded” by the European Commission for not doing enough to control inflation and Gordon Brown was ticked off for allowing the British economy to move into the deficit.

The Chancellor made plain that he would take no notice of the Commission’s strictures and continue to increase public investment, while the Irish Finance Minister, Charlie McCreevy, voiced anger at being told to change his plans for the booming Irish economy to prevent it overheating.

Mr Brown called for a “sensible interpretation” of the growth and stability pact that lays down the rules for eurozone countries to keep their budgets broadly in balance.

Countries inside the euro face sanctions if they allow their budget deficits to go beyond 3 per cent of GDP. Those outside can be mildly rebuked.

Francis Maude, the Shadow Foreign Secretary, said the more that was learnt about the euro, the more the reasons to keep the pound mounted up. The Commission should not have the right to tell the Britain what levels of borrowing it should undertake, he said.