Fianna Fáil Leader Micheál Martin has called on the Taoiseach and Tánaiste to make it clear within their European parties that German posturing on the future of Ireland’s corporation tax regime is unacceptable and must stop.
According to reports, Éamon Gilmore’s colleagues in the German Social Democratic Party are demanding commitments on changes to Irish corporation tax as a precondition for participation in the new German Government.
Deputy Martin commented, “Ireland’s corporation tax infrastructure has got nothing whatsoever to do with German political parties or their pre-Government negotiations. The fact that the Tánaiste’s colleagues in the SPD are demanding that it should, and the fact that the Taoiseach’s colleague Angela Merkel appears to be entertaining the demands, is very worrying.
“Ireland’s right to set and maintain its own corporation tax rates was a key precondition of our support for the Lisbon and Fiscal Treaties. The German authorities are well aware of this and would appear to need to be reminded of it. I am calling on the Tánaiste to travel to Berlin, meet his European party colleague and make it clear that their demand to interfere with our corporation tax rate is unacceptable. Similarly, the Taoiseach should make it clear to Chancellor Merkel that we will not be co-operating in any way with any fudge on this issue.
“For the last two years, the Tánaiste has been keen to boast about his power and influence in Europe. Bringing a swift end to this posturing by his party colleague would be a worthwhile use of that influence.”