Ireland does not believe that there are reasonable grounds for such a recommendation,

The concerns expressed in the draft recommendation are based on the wrong premise. The Commission's assessment and the Broad Economic Policy Guidelines advises Ireland to seek to achieve economic stability. This is exactly what the Irish government has sought to do in the budget in a number of ways,

This will not be allowed, because it would spell the end of the free market as we know it,

The danger is, if we're not very frank and strong about this, there will be tit-for-tat arrangements. You get into a situation where it becomes an epidemic.

I will be monitoring the situation closely and, if I am not satisfied that sufficient progress is being made, I will take tougher action,

One can stay within the legal rules, but not completely comply with the spirit,