The Taoiseach is denying that new proposals to give the EC budget pre-approval for member states amounts to a handing over sovereignty.

Brussels is tightening up on budget surveillance, and is pledging to suspend European funding to countries which fail to introduce sensible budgets.

Brian Cowen told the Dail that it’s just a proposal which needs discussion.

European Commission President Jose Manuel Barosso says it makes sense in light of the economic crisis.

“The rules and principals of the pact are sound, but we need to make sure they are respected” he said.

“This is why we propose a more upstream surveillance of the national budget – this is about giving a sensible European perspective to member states in the preparation of their budgets” he added.