Easing EU borrowing limits on the agenda

Political Editor

Referring to criticism from some member states that borrowing rules restrict investment in infrastructure, Mr Cowen said the issue was under consideration up at council and ECOFIN (Finance ministers) meetings and would form part of the agenda.

He said the challenge was to retain the stability of the euro while at the same time allowing countries to invest in their economic infrastructures.

The minister was speaking in Emo, Co Laois, following the first Cabinet meeting after the summer break.

Mr Cowen briefed his colleagues on the challenges facing the Government when it takes up its six-month presidency in the New Year.

The main priority, he said, was the accession of 10 states to the EU, due to be completed on May 1. He said one of the encouraging signs was that many of the accession states had used Ireland as a role model, not just in terms of its economic performance in recent years, but also because of the manner in which it had benefited from EU membership. Mr Cowen said the enlargement process and arrangements may not be fully completed by the time Italy completes its presidency at the end of the year and may be an issue during Ireland’s presidency.

“There will also be further accession talks with Bulgaria and Romania. We will also be meeting with Turkey to advance its claims. There will be efforts to open negotiations by the end of next year,” he said.

He said Iraq had been the one issue in which it had proved difficult for the EU to maintain a coherent position. He said Ireland would work during its presidency to find a common approach to deal with the ongoing crisis there. Mr Cowen said the Irish presidency would stress the benefits of a multilateral approach and a recognition of the vital role the UN can play in bringing stability to country. Winning the peace will rely on a collective effort,” he said.