Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

I thank the Deputy. I will provide some clarity on the corporation tax issue. It is important that people not try to muddy the waters. As part of an agreement to finance a programme in Cyprus, it and the other countries in the Eurogroup signed up to an increase in its corporation tax rates. The Deputy will remember that there was significant pressure on Ireland to do the same before, during and after our bailout negotiations. To the credit of the last Government, we resisted that pressure.

People will remember how, as soon as this Government took office, the first challenge to face the Taoiseach in Brussels was the considerable pressure to increase corporation tax rates, given Ireland's vulnerable position. We resisted. We showed that when a country wanted to resist tax measures, it could do so, since unanimous agreement is necessary if a change is to take place. Cyprus decided not to take this option. It decided that, as part of the package, it would increase corporation tax rates. It was entitled to do so.

There is no easy way to enter a bailout programme. Anyone who offers fairytale solutions for recapitalising banks without a cost being incurred by anyone is not living in the real world.

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