Economy gets mixed reception from EU mandarins

IRELAND’S budget plans are in line with the EU’s Growth and Stability Pact but inflation, wages and social welfare spending all need to be kept in check, the European Commission has warned.

The pact is designed to protect the stability of the euro. It has come under pressure from several countries in recent months but was described as untouchable by Monetary Affairs Commissioner Pedro Solbes yesterday.

However, a senior economist with the Economic and Social Research Institute warned that while Ireland is implementing policies to keep to the pact, they may not be the right policies for the economy.