Green Party Senator and Dublin candidate for the European elections, Deirdre de Burca, has welcomed an EU-wide financial package that will be announced this week, under which Ireland will be allowed to breach European Union spending guidelines for two years and access significant EU funding ahead of schedule.

According to de Burca the package will provide a boost for the Irish Government, which is preparing for a major shortfall in the annual tax take. “Initial estimates show a 25 per cent decrease in the corporation tax take in 2008 and a shortfall of more than 55 per cent in capital gains tax receipts,” she said.

The Green Party Senator said that the European Commission’s stimulus package is likely to contain ”concrete and ambitious proposals” to help EU member states to deal with the economic crisis.

“It is absolutely essential that countries would be allowed greater flexibility from the EU’s stability and growth pact, which limits borrowing by member states to three per cent of GDP. The flexibility will be allowed for a two-year period, after which members states will be expected to revert ‘back into discipline,’ according to senior Commission officials.”

However de Burca pointed out that member states already in breach of the three per cent figure, including Ireland, will have less flexibility than other countries. She also welcomed the second part of the stimulus package, which is to ‘front-load’ EU structural and social funds for member states.

“Commission sources have said that member states will be allowed to draw down structural and social funds ahead of target to boost their economies and maintain investment in capital and social projects. This is welcome news for the Irish economy,” de Burca concluded.

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Press Release by Deirdre