Seanad debates

Wednesday, 22 October 2003

European Convention/Intergovernmental Conference: Statements.

 

I would counsel caution on the taxation veto. I do so not because I want to put the country at risk but on foot of the fact that the absence of a common European policy on taxation means that some of the countries in eastern Europe are going to compete from the bottom with us in terms of their corporation taxation rates. If our rate, at 12.5%, is extremely attractive, then rates of 0% will be hugely attractive if the difference is that decisive. If it does not prove to be that decisive, we should perhaps consider a common baseline. If it is going to be that decisive, we are going to encounter difficulties. I am an enthusiast for expansion but we would need to be somewhat more nuanced in terms of our views on taxation.

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