Financial decisions spark concerns

BUSINESS reaction to major financial decisions which were taken by EU leaders at their summit in Brussels varied from caution to deep concern.

Over a seven-hour meeting, leaders hammered out changes to the Stability and Growth Pact that govern the eurozone, a new jobs and growth plan for the union and a revision of the strategically important Services Directive.

Taoiseach Bertie Ahern welcomed the new strategy that prioritises economic development on the basis that the benefits will trickle into better environment and social development.

He was also optimistic that agreement to change the Services Directive would open up the market.

However, not everyone was happy.

Paul Skehan, deputy secretary general of Eurochambres, the European Association of Chambers of Commerce, said the summit will be written off as another missed opportunity to put the European economy back on track.

"Instead of promoting a strong, stable currency, the summit has put the euro and thereafter growth and jobs at risk. Instead of protecting and nourishing the economy, the summit has championed protectionism," he said.

IBEC, the Irish employers organisation, was relieved countries did not give in to pressure to throw out the Services Directive.

Turlough O'Sullivan warned however that "the final agreement must deliver a genuine internal market in services."

The IBEC director general together with business leaders from all member states, including France and Germany, was cautious over the reform of Stability and Growth Pact.