McCreevy set for conflict over EU pact

FINANCE Minister Charlie McCreevy is set to become embroiled in the row over the French and German budget deficits as he takes over the chair of the EU Ecofin Council.

Next week the European Commission will decide whether to challenge the minister’s decision not to take action against the EU’s two largest economies over their breaching the rules of the Growth and Stability Pact.

Economic and Monetary Affairs Commissioner Pedro Solbes supported a legal challenge yesterday even though Commission President Romano Prodi indicated they might have to consider the political implications of such a decision.