EU Finance Ministers yesterday effectively abandoned proposals from the President of the Commission, Mr Jacques Santer, for an extra injection of £800 million into priority transport projects (TENS).

The ministers adopted a report from the "Gallagher group" which argued there was no possibility of winning a majority for revision of the financial perspectives for TENS because of the stringency imposed on member states by the Maastricht convergence criteria.

Expressing disappointment, Mr Santer said the ministers had gone back on a commitment of the Essen European Council. They had effectively decided that five of the 14 projects would not now be completed, he said.

However, the president of the European Investment Bank, Sir Brian Unwin, speaking at the Irish presidency press conference, disagreed. He admitted that five of the projects were in difficulty, said he was confident they would proceed if rephased or redesigned.

Sir Brian said that the EIB had already contributed some £24 billion to the £80 billion currently being spent on the road and rail networks.

The Minister for Finance, Mr Quinn, who chaired the meeting, also denied that five projects had been killed off. Although money was not available now, the council would certainly "consider any appropriate proposal from the European Investment Bank (EIB)", he said.

Mr Quinn had established the Gallagher group this summer under the former Commission official and Irish diplomat, Mr Eamon Gallagher.

Ministers yesterday also welcomed the decision of the Finns to bring the markka into the Exchange Rate Mechanism.