Enda Kenny (Mayo, Fine Gael)

I thank Deputy Catherine Murphy for that intervention. Ireland is a central member of the European Union. The other member states look at this country, which unfortunately is in a programme, as one that has a clear fix on where we want to be and is making steps to get there. It is a start and we have a long way to go. Our European colleagues now regard us in a different light than they did seven or eight months ago, principally because of the work of the Tánaiste in rebuilding our international reputation with our colleagues in the Union.

This will be an international agreement between the eurozone countries and a number of countries outside the eurozone, depending on what their parliaments wish to do. Deputy Ross raised the question of fears about the harmonisation of corporate tax rates and dangers to the IFSC. The issue of tax requires unanimity and is governed under the European Union treaties. This political agreement of Friday last is not a European Union treaty and will be crystalised, in whatever form, into an international agreement. The matter of corporate tax rates or any issue of tax requires unanimity under the European Union agreements and it remains so. There is no intention of having a difference of competitiveness between the IFSC, which is so importance to us, and other locations. We have already made the case on many occasions that one could not have a transaction tax applicable in Dublin and not applicable in London.

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