The right to decide its own budget had been retained by each member-state of the EU, the Minister for Finance, Mr McCreevy, has told the Joint Oireachtas Committee on European Affairs.
Defending his response to the recent implicit rebuke of the Government's fiscal policies by the EU, he pointed out that the Council of Economic and Finance Ministers (Ecofin) had issued a recommendation in relation to Ireland and not a reprimand as incorrectly stated in some media reports.
"I would also point out that, contrary to much of the media reporting, the council did not take a vote on this issue and, therefore, it is wrong to say that the other member-states voted against Ireland."
He had not described them as "jealous" but merely stated that "green eyes" were being cast in Ireland's direction.
Mr Proinsias De Rossa (Labour) said the Minister had done "untold damage to Ireland's standing in Europe". Far from being jealous, the rest of Europe was proud of Ireland's economic success and the role they had played in helping to bring it about.
He accused the Minister of providing "ammunition to the Eurosceptics", adding that it was "a gross act of foolhardiness to say the least" when the Government breached the guidelines agreed in Europe.
Mr McCreevy replied that he was not going to take "a lecture about European ideals" from Mr De Rossa who, in his "former incarnation", was a member of Official Sinn Fein which had opposed joining the European Economic Community, as it was then known. His present party, Labour, had also opposed membership.
The Fine Gael foreign affairs spokesman, Mr Jim O'Keeffe, said that despite the Minister's protestations, the council had not given him "a pat on the back". Although technically a recommendation, it was an adverse one, "an adverse recommendation we could have done without."
He felt the manner in which the Minister reacted to the rebuke was not the correct one. There was not a "single word of comfort" from any of the other 14 ministers present. "Does that not tell a tale in itself?"
He said a "more balanced and mature reaction" from Mr McCreevy would have brought better results. "He may have burnt up our political capital in Europe."
Senator Brendan Ryan (Labour) said it was playing with semantics for the Minister to say the council had adopted a recommendation rather than a reprimand. "It's like me recommending a student of mine to leave the course."
Mr Joe McCartin MEP (Fine Gael) said he was shocked at the Minister's initial reaction, "as if they declared war rather than made a polite recommendation". He did not think Mr McCreevy was guilty of a "mortal sin". It was the letter of the law which was broken, and the commission had a legal obligation to draw attention to it.