Enda Kenny (Mayo, Fine Gael)

The answer to the Deputy's question is clear. We can have all the discussions we like on the margins of Council meetings and there can be discussions between the leaders of any countries about issues that might affect them and relations between countries. These are European decisions which require unanimity from the Council. The Deputy is aware of the process of enhanced co-operation in some areas; for example, it occurs with regard to the common consolidated corporate tax base, which was raised here, and that is part of the Euro-Plus pact.

With regard to the problem facing Europe and the challenged countries, Europe decided to provide mechanisms for dealing with the issue. There is clearly a serious challenge ahead but the solution will not be decided in bilaterals between any two countries or a small group. There must be an EU decision. In that sense and with the point I make about the interest rate reduction in Ireland's case, most countries accept that we have measured up to very severe conditions and passed the first analysis of where we are headed. There is a demand, or a request, that there be an increase in Ireland's corporate tax rate. Tax is a national competence, and I feel very strongly about that issue, as does the Deputy.

I will meet the new Portuguese Prime Minister at the meeting and have discussions with him about the new position of his country. These are decisions taken by the 27 leaders and they are the only people in the room. From that perspective I intend to participate fully in the discussions affecting the Union and the countries therein, specifically those which are challenged.

The Deputy asked if I had spoken to the Greek and Portuguese Governments with the purpose of examining the way the three states affected by bailouts may be able to help each other. I have not. I spoke to the Greek Prime Minister before the last meeting, when he asked for support in respect of an interest rate reduction and an extension of the repayment period; I supported him on those issues. I spoke to the former Portuguese Prime Minister when his country was not in receipt of a bailout and he resigned afterwards while continuing in a caretaker capacity. Elections have taken place and I hope to meet the new prime minister at the Council meeting.

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