Charlie McCreevy
Encyclopedia
Charles "Charlie" McCreevy (born 30 September 1949) is a former Irish politician
Politics of the Republic of Ireland
Ireland is a parliamentary, representative democratic republic and a member state of the European Union. While the head of state is the popularly elected President of Ireland, this is a largely ceremonial position with real political power being vested in the indirectly elected Taoiseach who is...

. He was the European Commissioner
European Commissioner
A European Commissioner is a member of the 27-member European Commission. Each Member within the college holds a specific portfolio and are led by the President of the European Commission...

 for Internal Market and Services from 2004–2010. He was first elected to Dáil Éireann
Dáil Éireann
Dáil Éireann is the lower house, but principal chamber, of the Oireachtas , which also includes the President of Ireland and Seanad Éireann . It is directly elected at least once in every five years under the system of proportional representation by means of the single transferable vote...

 as a Fianna Fáil
Fianna Fáil
Fianna Fáil – The Republican Party , more commonly known as Fianna Fáil is a centrist political party in the Republic of Ireland, founded on 23 March 1926. Fianna Fáil's name is traditionally translated into English as Soldiers of Destiny, although a more accurate rendition would be Warriors of Fál...

 TD
Teachta Dála
A Teachta Dála , usually abbreviated as TD in English, is a member of Dáil Éireann, the lower house of the Oireachtas . It is the equivalent of terms such as "Member of Parliament" or "deputy" used in other states. The official translation of the term is "Deputy to the Dáil", though a more literal...

 in 1977 and held the seat in Kildare
Kildare (Dáil Éireann constituency)
Kildare was a parliamentary constituency represented in Dáil Éireann, the lower house of the Irish parliament or Oireachtas from 1923 to 1937 and from 1948 to 1997...

 (and later Kildare North) until 2004 when he became Ireland's European Commissioner. In successive governments he served as Minister for Social Welfare
Minister for Social and Family Affairs (Ireland)
The Minister for Social Protection is the senior minister at the Department of Social Protection in the Government of Ireland.The current Minister for Social Protection is Joan Burton, TD.-Overview:...

 (1992–93), Minister for Tourism and Trade
Minister for Arts, Sport and Tourism (Ireland)
The Minister for Arts, Heritage and the Gaeltacht is the senior minister at the Department of Arts, Heritage and the Gaeltacht in the Government of Ireland.The current minister is Jimmy Deenihan, TD. He is assisted by:...

 (1993–94) and Minister for Finance
Minister for Finance (Ireland)
The Minister for Finance is the title held by the Irish government minister responsible for all financial and monetary matters. The office-holder controls the Department of Finance and is considered one of the most important members of the Government of Ireland.The current Minister for Finance is...

 (1997–2004).

Early life and career

Born in Sallins
Sallins
Sallins is a suburban town in County Kildare, Ireland, situated 3.5 km north of the town centre of Naas, from which it is separated by the M7 motorway. Sallins is the anglicised name of Na Solláin which means "The Willows"....

, County Kildare
County Kildare
County Kildare is a county in Ireland. It is part of the Mid-East Region and is also located in the province of Leinster. It is named after the town of Kildare. Kildare County Council is the local authority for the county...

, McCreevy was educated locally at Naas
Naas
Naas is the county town of County Kildare in Ireland. With a population of just over twenty thousand, it is also the largest town in the county. Naas is a major commuter suburb, with many people residing there and working in Dublin...

 CBS
Congregation of Christian Brothers
The Congregation of Christian Brothers is a worldwide religious community within the Catholic Church, founded by Blessed Edmund Rice. The Christian Brothers, as they are commonly known, chiefly work for the evangelisation and education of youth, but are involved in many ministries, especially with...

 and at the fee paying Gormanston Franciscan College. He studied Commerce at University College Dublin
University College Dublin
University College Dublin ) - formally known as University College Dublin - National University of Ireland, Dublin is the Republic of Ireland's largest, and Ireland's second largest, university, with over 1,300 faculty and 17,000 students...

 and went on to become a chartered accountant. His family background was modest (his father – and ancestors since the late 18th century – was a lock-keeper on the Grand Canal, a job carried on by his mother after the death of his father when McCreevy was four years old). So his post-compulsory education had to be achieved through winning scholarships.

His political career began with when he won a seat in the Kildare constituency
Kildare (Dáil Éireann constituency)
Kildare was a parliamentary constituency represented in Dáil Éireann, the lower house of the Irish parliament or Oireachtas from 1923 to 1937 and from 1948 to 1997...

 at the 1977 general election
Irish general election, 1977
The Irish general election of 1977 was held on 16 June 1977 and is regarded as a pivotal point in twentieth century Irish politics. The general election took place in 42 parliamentary constituencies throughout Ireland for 148 seats in the lower house of parliament, Dáil Éireann. The number of...

 which was a landslide for Charles Haughey
Charles Haughey
Charles James "Charlie" Haughey was Taoiseach of Ireland, serving three terms in office . He was also the fourth leader of Fianna Fáil...

's supporters in Fianna Fáil
Fianna Fáil
Fianna Fáil – The Republican Party , more commonly known as Fianna Fáil is a centrist political party in the Republic of Ireland, founded on 23 March 1926. Fianna Fáil's name is traditionally translated into English as Soldiers of Destiny, although a more accurate rendition would be Warriors of Fál...

 and he was re-elected at every subsequent election until he joined the Commission. Between 1979 and 1985 he was also elected as member of Kildare County Council
Kildare County Council
Kildare County Council is the local authority which is responsible for County Kildare in Ireland. The Council is responsible for Housing and Community, Roads and Transportation, Urban planning and Development, Amenity and Culture, and Environment. The council is governed by the Local Government...

.

Relationship with Charles Haughey

In the December 1979 Fianna Fáil leadership contest
Fianna Fáil leadership election, 1979
The 1979 Fianna Fáil leadership election began in December 1979, when Jack Lynch resigned as party leader and Taoiseach. Lynch had been party leader for thirteen years and Taoiseach for over nine years. His successor was elected by the members of the Fianna Fáil parliamentary party on 7 December...

, McCreevy strongly supported the controversial Charles Haughey
Charles Haughey
Charles James "Charlie" Haughey was Taoiseach of Ireland, serving three terms in office . He was also the fourth leader of Fianna Fáil...

 who narrowly won the post. However, in a time of severe budgetary difficulties for Ireland, McCreevy soon became disillusioned with the new Taoiseach
Taoiseach
The Taoiseach is the head of government or prime minister of Ireland. The Taoiseach is appointed by the President upon the nomination of Dáil Éireann, the lower house of the Oireachtas , and must, in order to remain in office, retain the support of a majority in the Dáil.The current Taoiseach is...

 and his fiscal policies. In October 1982 McCreevy launched a motion of no-confidence in the party leader, which evolved into a leadership challenge by Desmond O'Malley
Desmond O'Malley
Desmond Joseph "Des" O'Malley is a former Irish politician.Born in Limerick, O'Malley was raised in a local political dynasty that had a strong association with Fianna Fáil. Elected to Dáil Éireann in 1968, he quickly became a trusted confidante of Taoiseach Jack Lynch...

. In an open ballot and supported by only 21 of his 79 colleagues (known as the "Gang of 22
Gang of 22
The "Gang of 22" was a group of Fianna Fáil Teachtaí Dála who were opposed to the leadership of Charles Haughey in the early 1980s...

"), the motion failed and McCreevy was temporarily expelled from the parliamentary party. In later years O'Malley was expelled from Fianna Fáil itself and formed the Progressive Democrats
Progressive Democrats
The Progressive Democrats , commonly known as the PDs, was a pro-free market liberal political party in the Republic of Ireland.Launched on 21 December 1985 by Desmond O'Malley and other politicians who had split from Fianna Fáil and Fine Gael, the Progressive Democrats took liberal positions on...

 (PDs), espousing conservative fiscal policies. Although considered ideologically close to the PDs, and a personal friend of its erstwhile leader, Mary Harney
Mary Harney
Mary Harney is a former Irish politician. She served as Tánaiste from 1997–2006, Minister for Enterprise, Trade and Employment from 1997–2004, and as Minister for Health and Children from 2004 to 2011...

, McCreevy chose to remain a member of Fianna Fáil, where he would eventually serve in joint FF-PD Governments.

Early ministerial career

For his first 15 years as TD, while Haughey remained leader, McCreevy remained a backbencher
Backbencher
In Westminster parliamentary systems, a backbencher is a Member of Parliament or a legislator who does not hold governmental office and is not a Front Bench spokesperson in the Opposition...

. In 1992, Albert Reynolds
Albert Reynolds
Albert Reynolds , served as Taoiseach of Ireland, serving one term in office from 1992 until 1994. He has been nominated for the Nobel Peace Prize...

 became Taoiseach and McCreevy was appointed Minister for Social Welfare
Minister for Social and Family Affairs (Ireland)
The Minister for Social Protection is the senior minister at the Department of Social Protection in the Government of Ireland.The current Minister for Social Protection is Joan Burton, TD.-Overview:...

. In this role, he is principally remembered for a set of 12 cost-cutting measures, collectively termed the "dirty dozen", which were arguably minor in their direct impact but provided a major political headache for his party in the 1992 General Election. In 1993 he became Minister for Tourism and Trade
Minister for Arts, Sport and Tourism (Ireland)
The Minister for Arts, Heritage and the Gaeltacht is the senior minister at the Department of Arts, Heritage and the Gaeltacht in the Government of Ireland.The current minister is Jimmy Deenihan, TD. He is assisted by:...

, which he held until the government fell in December 1994. In opposition, and under new Fianna Fáil leader Bertie Ahern
Bertie Ahern
Patrick Bartholomew "Bertie" Ahern is a former Irish politician who served as Taoiseach of Ireland from 26 June 1997 to 7 May 2008....

, McCreevy was named to the Front Bench as Spokesman for Finance
Minister for Finance (Ireland)
The Minister for Finance is the title held by the Irish government minister responsible for all financial and monetary matters. The office-holder controls the Department of Finance and is considered one of the most important members of the Government of Ireland.The current Minister for Finance is...

. In this role he was viewed as actively pro-enterprise, anti-spending and a key advocate for tax cuts.

Minister for Finance

In 1997, Fianna Fáil returned to power and McCreevy became Minister for Finance
Minister for Finance (Ireland)
The Minister for Finance is the title held by the Irish government minister responsible for all financial and monetary matters. The office-holder controls the Department of Finance and is considered one of the most important members of the Government of Ireland.The current Minister for Finance is...

. His period coincided with the Celtic Tiger
Celtic Tiger
Celtic Tiger is a term used to describe the economy of Ireland during a period of rapid economic growth between 1995 and 2007. The expansion underwent a dramatic reversal from 2008, with GDP contracting by 14% and unemployment levels rising to 14% by 2010...

 era which saw the rapid growth of the Irish economy due to social partnership between employers, government and unions; increased female participation in the labour force, decades of tuition-free secondary education; targeting of foreign (primarily U.S.) direct investment; a low corporation tax rate; an English-speaking workforce only five time-zones from New York, and membership of the European Community – which provided payments for infrastructural development and export access to the Single Market.

McCreevy was a consistent advocate of cutting taxes and spending. As Minister he had an opportunity to implement these policies. During his term in Finance, he made many changes to simplify the tax system and presided over Ireland's entry to Economic and Monetary Union of the European Union
Economic and Monetary Union of the European Union
The Economic and Monetary Union is an umbrella term for the group of policies aimed at converging the economies of members of the European Union in three stages so as to allow them to adopt a single currency, the euro. As such, it is largely synonymous with the eurozone.All member states of the...

 and later, the changeover to the Euro. He maintained a significant surplus during his seven years in Finance by forecasting tax takes which were lower than average. He simultaneously implemented a tax-cutting programme, major increases in health, education and pension spending as well as increasing investment in infrastructural development to 5% of GNP. Unemployment fell from 10% to 4.4%. Real GDP growth fell steadily, however, from a peak of over 11% in 1997 when McCreevy took office to just over 4% in 2004. Real GDP growth across the full period of the Celtic Tiger represented by far the highest average of any western European country. Inflation was increased from 1.5% in 1997, to 5.5% in 2000, before falling steadily to just over 2% in 2004.

From 1997 to 2000, McCreevy cut Capital Gains Tax from 40% to 20%, and extended Section 23 Tax allowances to the Shannon area (against the advice of the Finance Department.) These two measures may have been partly responsible for the explosion in housing and commercial property speculation, which led ultimately to the collapse of the Irish banking system.

Frequently outspoken, McCreevy sometimes made comments which attracted controversy. For example, McCreevy once referred to the Irish health system as a "black hole" and reacted to the initial Irish rejection of the Nice Treaty
Treaty of Nice
The Treaty of Nice was signed by European leaders on 26 February 2001 and came into force on 1 February 2003. It amended the Maastricht Treaty and the Treaty of Rome...

 as "a sign of a healthy democracy". He later explained this as reflecting a wake-up call to politicians and others who, like him, had expected an almost automatic Yes vote. McCreevy also prompted warnings from the European Commission, who claimed that his £2 billion tax giveaway in 2000 would be inflationary, and harmful to the Irish economy.

In 2008 as Ireland entered recession McCreevy's stewardship has been cited as one of the reasons why the global financial crisis is hitting Ireland especially hard, due to his "light touch" regulation of the financial system.

Former Taoiseach
Taoiseach
The Taoiseach is the head of government or prime minister of Ireland. The Taoiseach is appointed by the President upon the nomination of Dáil Éireann, the lower house of the Oireachtas , and must, in order to remain in office, retain the support of a majority in the Dáil.The current Taoiseach is...

 Garret FitzGerald
Garret FitzGerald
Garret FitzGerald was an Irish politician who was twice Taoiseach of Ireland, serving in office from July 1981 to February 1982 and again from December 1982 to March 1987. FitzGerald was elected to Seanad Éireann in 1965 and was subsequently elected to Dáil Éireann as a Fine Gael TD in 1969. He...

 has attributed Ireland's dire economic state in 2009, on a series of "calamitous" government policy errors by the then Finance Minister Charlie McCreevy, who between the years of 2000 and 2003, boosted public spending by 48pc while cutting income tax.

European Commissioner

In 2004, McCreevy was selected by the Government to replace David Byrne
David Byrne (politician)
David Byrne is an Irish senior counsel, former Attorney General of Ireland and former EU Commissioner. In December 2006 Byrne was appointed as Chancellor of Dublin City University....

 as Ireland's European Commission
European Commission
The European Commission is the executive body of the European Union. The body is responsible for proposing legislation, implementing decisions, upholding the Union's treaties and the general day-to-day running of the Union....

er. He was appointed to the Internal Market and Services portfolio by President of the European Commission
President of the European Commission
The President of the European Commission is the head of the European Commission ― the executive branch of the :European Union ― the most powerful officeholder in the EU. The President is responsible for allocating portfolios to members of the Commission and can reshuffle or dismiss them if needed...

 José Manuel Durão Barroso
José Manuel Durão Barroso
José Manuel Durão Barroso is a Portuguese politician. He is President of the European Commission, since 23 November 2004. He served as Prime Minister of Portugal from 6 April 2002 to 17 July 2004.-Academic career:...

. At his confirmation hearings in the European Parliament
European Parliament
The European Parliament is the directly elected parliamentary institution of the European Union . Together with the Council of the European Union and the Commission, it exercises the legislative function of the EU and it has been described as one of the most powerful legislatures in the world...

 MEPs described him as “fluent and relaxed” giving straightforward answers in a refreshing and engaging manner. He also informed them that he had campaigned for the ratification of every European Treaty since 1972.

He describes his approach to his portfolio is;

You will find me ready to meet, discuss, listen and argue on how best to deliver to our citizens the real benefits of an Internal Market. There are enormous challenges facing the EU in the coming period on which we all must find common ground. I want our policies to show that EU means something real and positive to the people in Europe


McCreevy's EU Services Sector Competition Directive, sets out to achieve full competition in the Services sector across the EU. This is rather difficult to implement in practical terms. It is also very unpopular politically in large countries with high unemployment rates like France, Germany and Italy. McCreevy's determination to push this through, did result in much conflict. McCreevy could not see why the level of competition sought in the directive needed to be compromised. His viewpoint was that lack of competition was hurting consumers, without corresponding benefits to other interested parties.

McCreevy has sided with the major record labels who are trying to extend a fifty year copyright exemption to ninety five years. In 2008 McCreevy was a supporter of attempts to introduce software patent
Software patent
Software patent does not have a universally accepted definition. One definition suggested by the Foundation for a Free Information Infrastructure is that a software patent is a "patent on any performance of a computer realised by means of a computer program".In 2005, the European Patent Office...

s in the European Union.

Following his departure from the Commission, McCreevy was force to resign from the board of a new banking firm, NBNK Investments, after an EU ethics committee found a conflict of interest with his work as commissioner in charge of financial regulation. This is first time that a former member of the EU executive has had to resign a directorship the 2003 system for overseeing the work of retired commissioners.

Northern Rock Crisis

In October 2007 McCreevy, commenting on the Northern Rock Bank's loss of investor confidence, claimed that banking regulations in England which forces banks to be open to scrutiny from outside investors, caused the panic. He said that if access to the banks dealings had been restricted, then the trouble could have been avoided.

Lisbon Treaty ratification 2008

Irish constitutional law requires a referendum to alter the constitution for such a major change as the adoption of the Lisbon Treaty. Interviewed beforehand, McCreevy said that he had not read the Treaty in full himself, though he understood and endorsed it:
"I don’t think there’s anybody in this room who has read it cover to cover. I don’t expect ordinary decent Irish people will be sitting down spending hours reading sections about sub-sections referring to other articles and sub-articles, but there is sufficient analysis done and people have put together a consolidated text which is quite easy to read ...Anyone who thinks that, as the reality and inevitability of EU enlargement has taken hold, that we can continue to tackle urgent problems without streamlining of the decision-making process is failing to face up to reality."


In the event, the referendum was held on 12 June and the Irish electorate did not approve the Treaty.

McCreevy was then heavily criticised in the European Parliament by the leader of the Socialist group in the European Parliament
European Parliament
The European Parliament is the directly elected parliamentary institution of the European Union . Together with the Council of the European Union and the Commission, it exercises the legislative function of the EU and it has been described as one of the most powerful legislatures in the world...

, Martin Schulz
Martin Schulz
Martin Schulz is a German politician and Member of the European Parliament for the Social Democratic Party of Germany, since 2004 leader of the Socialists in the European Parliament .-Career:* 1975-1977: Apprentice...

, who demanded on 17 June 2008 that Charlie McCreevy be removed from his post of EU commissioner. Schulz slightly misquoted Mr McCreevy, however, saying that he had contributed to Ireland's rejection of the Lisbon Treaty with remarks during the referendum campaign that no "sane person" would read the document.

"This man goes to Ireland and says he has not read the treaty and tells people there is no need to read it," Mr Schultz said during a heated debate on the referendum at the European parliament
European Parliament
The European Parliament is the directly elected parliamentary institution of the European Union . Together with the Council of the European Union and the Commission, it exercises the legislative function of the EU and it has been described as one of the most powerful legislatures in the world...

 in Strasbourg today."


McCreevy was not alone in this; it was reported that Brian Cowen
Brian Cowen
Brian Cowen is a former Irish politician who served as Taoiseach of Ireland from 7 May 2008 to 9 March 2011. He was head of a coalition government led by Fianna Fáil which until 23 January 2011 had the support of the Green Party and independent TDs.Cowen was also leader of Fianna Fáil from 7 May...

, the Taoiseach
Taoiseach
The Taoiseach is the head of government or prime minister of Ireland. The Taoiseach is appointed by the President upon the nomination of Dáil Éireann, the lower house of the Oireachtas , and must, in order to remain in office, retain the support of a majority in the Dáil.The current Taoiseach is...

 (Prime Minister) at the time, had not read all of the Treaty.

External links

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