EU Pact move gives Cowen €1.6bn

FINANCE Minister Brian Cowen will have an additional €1.6 billion to spend on infrastructure next year following changes to the EU’s Stability and Growth Pact.

Development aid and the cost of any future unification of the country could also be allowed under the revised rules, which EU leaders are expected to sign-off at their summit in Brussels tomorrow.

The Pact limited member states to keeping the national budget in balance but, under the new conditions, countries like Ireland, with a low debt ratio, can run a deficit of up to 1% in the medium term.