Ireland will maintain control over its domestic taxation policies despite new EU plans to re-launch the Single Market which includes a proposal on a common consolidated corporation tax base, the EU Commissioner for Internal Markets and Service, Michel Barnier has told the Oireachtas European Affairs Committee today. He said that EU taxation policy must be decided unanimously by all the EU Member States and therefore nothing can go through which has not been accepted by Ireland, including proposals on a common consolidated corporate tax base.
Commissioner Barnier was addressing the Committee on the recently published details of the new Single Market Act. The aim of the act is to promote a highly competitive social market economy. Specifically, the Act contains 50 proposals intended at completing and re-energising the Single Market.
The Commissioner also acknowledged to Committee members that while all of Europe was in the economic crisis together, Ireland was suffering more than most. Nevertheless, he stated that he believed there was “light at the end of the tunnel.” The EU will continue to act in a spirit of solidarity and collective responsibility in tackling the crisis.
Committee Chairman, Bernard Durkin TD said; “I am pleased that the Commissioner clarified once and for all that Irish taxation policy is a sovereign matter and that the new Single Market Act will not undermine Ireland’s right to decide its own tax rates, including its corporate tax rate which is so vital to Ireland’s competiveness. There have been some who have made suggestions to the contrary, now however we have been assured definitely.
It also gives us some encouragement that the Commissioner expressed some optimism for the future of our economy, as he himself noted Ireland has suffered more than most EU member States during the crisis.
Ireland benefited hugely from the Single Market and the Commissioner is convinced that a revitalised Single Market will help turn the Irish economy around again.
The Commissioner also conceded mistakes were made in the past but the Commission is working with determination to ensure that strongly regularised financial markets will from now on serve the real economy and that a new Single Market Act will reinvigorate businesses and create sustainable jobs.”
The Committee will be considering the Commission’s Single Market Act in the coming months with a view to making a contribution to the Commission before the Act is finalised and presented to the Spring European Council.
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