Mr. Pierre Moscovici:

Thank you, Chairman. First, I agree that taxation issues are mostly to be addressed at national level. It is a matter of subsidiarity and sovereignty. At the same time, the EU does have a taxation policy, which is to fix some common rules and principles and a common framework. That always has been the case and we have, for example, directives on VAT.

What I propose as Commissioner with responsibility for taxation is to act on three main priorities. The first, which is not the most important, relates to the financial transaction tax. The Commission supports the principle of FTT, although we are leaving it up to member states to decide what they will do. It is no longer a Commission initiative. The other main points of my action plan are to do with transparency and competitiveness. In fact, everything I do in the next five years will be based on those two priorities. On the question of transparency, we started with the proposed directives on automatic exchange of information on tax rulings. I have stated that I do not condemn the principle of tax rulings, but any such rulings which introduce capacity to distort competition have to be avoided. I will make more proposals in the future for increased transparency and competitiveness. Then I will move on to the common consolidated corporate tax base, CCCTB.

The question was raised as to whether EU actions could threaten member states with a more competitive tax regime. If a country's competitiveness is based on fair and transparent practices, there is no threat there. However, if a country is intentionally profit-shifting at its neighbours' expense, then it is not a sustainable economic model. As I said in my introduction, we all want the same thing, namely, a fair and transparent taxation policy. It is in the capacity of the EU to develop that. We welcome Ireland's decisions to end tax regimes that might support aggressive tax planning. These have included measures to deal with stateless companies and phase out the double Irish. The Irish authorities are now doing something that is different, fair and more transparent. Any decision on taxation issues must be made under conditions of unanimity. This sets a limit to the European power and gives responsibility to member states.

Coming back to CCCTB, the project has been stuck for years and it is reasonable to ask why we are re-launching it.

Now more than ever, the common consolidated corporate tax base, CCCTB, has real relevance. It could make an important contribution to growth and competitiveness, making cross-border business easier and cheaper in the Single Market. It also offers a potentially powerful tool for reducing tax avoidance and making corporate taxation more transparent. It could be a solid framework through which to implement many OECD base erosion and profit shifting, BEPS, measures in a way that worked for the EU.

In developing the way forward for the CCCTB, we have taken into account member states' concerns and expectations from the discussions to date. What I propose - the Commission will debate it tomorrow - will be somehow new. I will ask for something from this committee, the Irish Government and the Irish Parliament. I am conscious that this is not their favourite proposal, but I ask them not to enter into this debate with a closed mind and to consider what the Commission proposes. There should be good political support for relaunching the CCCTB with some adaptations, given the need for effective tools to combat corporate tax avoidance. It will be a dialogue between us. I will not repropose exactly the same thing. I am trying to think about what the preoccupations of member states, including Ireland, were in the previous debate, as this proposal has been on the Council's table for almost five years.

I hear the accent members place on investing for the people. That is what this is about. We must invest in the future economy, that being, digital, transport, energy, human capital, innovation, research and universities. These are the priorities that will be supported by the Juncker plan. Mr. Jyrki Katainen was here last week and heard messages from the committee, particularly about the adaptation of the Juncker plan to the size of the economy, but I would insist on another point, namely, the capacity of the Irish economy, due to its people's skills and the quality of its universities and human capital, to build qualitative projects that can be supported by the Juncker plan. I am sure that my view is shared by Mr. Katainen and I know that it is the philosophy of the Commission President. The question is not whether a country or project is large or small. It is whether the project is good or bad. I am certain that a country like Ireland, which I know well having visited this Parliament several times more than ten years ago, albeit perhaps in a comparable room to this one, is capable of developing human capital, people's skills and good projects for the investment plan. This investment plan is for Europe, not this or that country or public or private. It is for public and private and all of our countries.