Bernard Durkan (Kildare North, Fine Gael) | Oireachtas source

I welcome the ambassador and thank him for attending the committee to lay out the stall of the Luxembourg Presidency. I wish him and his Government every success during the course of that Presidency.

I welcome also the seven matters of priority mentioned, including stimulating investment to boost growth and employment, the importance of which we are aware of in Ireland. We hope that Luxembourg is successful in that regard. On the second priority, deepening the European Union's social dimension, following the recent serious economic downturn, there is an urgent need to address the social issues in any way that is within our capacity. It is most important to recognise that this is necessary.

The ambassador has already responded to questions from the Vice Chairman on the third priority of managing migration, so I will move on. On revitalisation of the Single Market by focusing on digital dimensions, which is an excellent objective, I hope that we capitalise on it to the best of our ability. The ambassador also mentioned boosting European competitiveness in a global transparent framework, which is welcome.

The common consolidated corporate tax base, CCCTB, is an issue that is likely to be dealt with in the course of Luxembourg's Presidency. Ireland has received a great deal of criticism over the past couple of years on the basis that it, allegedly, operates an unfair system in terms of facilitating foreign direct investment companies here. It goes without saying that a 12.5% tax was applied to all manufacturing undertaken here by foreign investors. The allegation was made that some companies in other jurisdictions were re-routing their profits through Ireland. There is no proof of that. Ireland is not at the centre of the European market. It is an island nation on the periphery of Europe. The only way off this island is by aeroplane or boat. It is not possible to drive to the centre of Europe from Ireland. There are issues in this regard that need to be borne in mind in the context of the debate that will take place around the levelling of the playing field, which we hope will happen. Ireland is often accused, including by some senior politicians at the centre of the European Union, of operating at an unfair advantage. I refute that. We have had a system in place that is open and transparent and is necessary to ensure we can compete on a level playing field.

The debate around the economic crash is ongoing at the centre of Europe, in particular in relation to Greece. I am not familiar with all of the ingredients of that debate. We get our information via the media, in so far as we can. I believe there is a necessity at this stage for realism around what the European Union and members states engage in. We are on the world stage. A procrastinated debate is demeaning to the European Union and to member states. It should not continue indefinitely. There are procedures in place to deal with this type of situation.

In the case of a member state falling into economic difficulty, there are economic stress tests that take place. They are well known. Those who read economics will know this, and I apologise to all economists in the House, but it is not rocket science; it is quite simple. In effect, it is a due diligence report that indicates the capacity of a company or a country to bear up to its economic or fiscal responsibilities. It should be possible to identify a route and a path within that, keeping in mind the necessity to recognise the ability of the individual country's economy to stand up to the pressure generated by the situation that has developed, which we in this country unfortunately had to face and not without considerable stress and hardship. Moreover, it has not gone away and will not for a considerable time. I emphasise the importance of the focus for the good of the European Union, for the good of the people of each member state of the Union and for the good of those countries that already have made sacrifices and those which continue to be obliged to make sacrifices, while appealing to all concerned to address the issues fairly and honestly and not in a political way to seek advantage of the situation.