Brussels bureau chief Peter Spiegel says Ireland and Portugal face a grilling on their budgets at the meeting of EU finance ministers in Brussels, and that pressure is building on these countries to take rescue aid, as fear of debt contagion across the eurozone increases.
The clash over next year’s EU budget has widely been viewed as a contest between the austere and the profligate. The end result, after a final round of negotiations collapsed in the wee hours of the night, is that the forces of austerity, led by UK prime minister David Cameron and his Dutch and Danish allies, prevailed over a spendthrift European parliament.
But there is another – often overlooked – element to the debate that animated the member states’ unexpectedly stubborn stance: a desire to punish a Parliament that has grown increasingly assertive – some say grasping – since the Lisbon treaty came into force in December.
“There’s a feeling that they’re just going to keep pushing and pushing for more power. So it’s better to confront them now,” one diplomat explained. Read more