EU finance ministers should take the Government to task over its budgetary policy at the Ecofin meeting on Monday, Bundesbank deputy president Mr Juergen Stark said in a newspaper interview today.
"Since the end of 1997, Dublin has been pressed time and again to tighten its purse strings, but to no avail," Mr Stark told the financial daily Boersen-Zeitung.
If Ecofin ministers did not criticise a small country such as Ireland at their meeting on Monday, that would "set a precedent for larger EU states," Mr Stark argued.
"The Irish wanted to be part of the first wave of currency union right away but have not taken the necessary measures at home to contribute to stability," Mr Stark said.
Last month, the EU Commission warned of a possible overheating of the Irish economy and risks of inflation in contradiction with the euro-zone stability pact.
It was the first time the commission had singled out a country in the 12-nation euro zone for such a recommendation, and amounted to a strong criticism of Dublin's economic policy.
Ecofin "has no choice" but to issue a recommendation to Dublin to contain public spending and not fuel inflation, Mr Stark said.
AFP