Michael McGrath (Cork South Central, Fianna Fail)
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55. To ask the Minister for Finance the progress made in setting up the escrow account for the money owed by a company (details supplied); when it will be established; when the Commission's decision against the State for the delay in collecting money from the company will be heard by the European Court of Justice; the scope that is there for the Commission to remove its decision against the State if money is subsequently collected from the company; and if he will make a statement on the matter. [50797/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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Ireland has never accepted the Commission’s analysis in the Apple State aid Decision.

However, we have always been clear that the Government is fully committed to ensuring that recovery of the alleged Apple State aid takes place without delay and has committed significant resources to ensuring this is achieved. 

Irish officials and experts have been engaged in intensive work to ensure that the State complies with all its recovery obligations as soon as possible, and have been in constant contact with the European Commission and Apple on all aspects of this process for over a year.

Ireland has made significant progress on this complex issue and is close to the establishment of an escrow fund in compliance with all relevant Irish constitutional and European Union law.  Given the scale and bespoke nature of such a fund, the precise terms are subject to confidential and commercially sensitive deliberations and I will not be drawn into a public commitment on timeframes as that could undermine the Irish negotiation position – save to say that it will take place as soon as possible.

The announcement of the intention to launch infringement proceedings against Ireland is a wholly unnecessary step by the Commission, in an area where they are afforded a broad level of discretion and they therefore should use their power responsibly.

No fines will occur to Ireland on foot of infringement proceedings under Article 108(2) of the Treaty of the Functioning of the European Union.  Assuming the Commission are able to successfully convince the European Court of Justice that Ireland has not made sufficient progress on recovery, the result is a declaration from the Court that Ireland has not complied with our treaty obligations.  This is something that the Government takes very seriously and we will do everything in our power to defend such action.

Fines may occur on foot of a second court action taken by the Commission, for Ireland’s failure to have complied with a judgement of the European Court of Justice under Article 260(2) of the Treaty.  The level of fines is at the discretion of the court – and the purpose behind them is to ensure that Member States takes their Treaty obligation seriously.

The Government has been very clear will we fully respect the rule of law in the European Union and has spent over €1m specifically to ensure that we comply with the recovery obligation.  We will continue to take all necessary steps to ensure that the need for such action and the levelling of such fines does not arise.