Irish seek increased budget flexibility

A major battle has kicked off in the EU over just how austere budgets should be in the future with Ireland in a minority in the European People’s Party looking for much greater flexibility.

Italy and France — both with Socialist prime ministers — are pushing for a wide range of government spending on growth enhancing measures not to be counted towards a country’s deficit under the Growth and Stability Pact.

German officials point out that under the Six Pack — part of the EU semester rules on budgets — there is leeway for this, including for money spent on pensions reform and job creation.