Mr. Valdis Dombrovskis:

If one considers the debt-GDP ratios in Greece, Portugal and Italy, one notes they were substantially higher than before the Irish GDP adjustment.

With regard to public and private debt, of course levels of debt are high in Ireland. We also see the process of deleveraging. That is why we are also emphasising the need to continue to reduce general government debt ratio. It is in our country-specific recommendations. The emphasis is still there.

On the question on the taxation of the digital economy, we have already touched on this. It is still work in progress. The European Commission is currently ascertaining the best way to address the taxation of the digital economy. We have had discussions on this with the Irish Government.

It is also recognised that we need to adjust digital taxation because our tax system is basically outdated. This area has been developed for an economy that is tangible and that includes tangible assets and goods. It is not adapted for the increasing share of digital economy. We can only predict that this share will continue to increase.

We expect digital economy companies to pay their fair share of taxes. We want to reflect the principle that taxes should be paid where real economic activity is taking place. If companies are making profit in Europe but not paying taxes in Europe, it is a problem and we believe that needs to be addressed. Of course member states will need to have discussions to find the right balance. As committee members are aware, in the area of taxation the unanimity principle applies and all member states need to agree. We are ready to have those discussions. Ideally, this would move forward at international level in the context of the OECD framework and the fight against base erosion and profit-shifting. If we see that this international war is not advancing sufficiently, then Europe should be ready to act and move forward.