Fianna Fáil Spokesperson on Public Expenditure and Financial Sector Reform Michael McGrath TD has expressed grave concern at reports emerging from the EU Summit in Brussels that Irish officials are engaged in discussions with French officials on a form of words which will involve the Irish Government making concessions on the harmonisation of the corporation tax base in exchange for a cut on our bailout interest rate.

He commented, “There has been consistent consensus among the mainstream political parties in Ireland that we must resist any compromise on the controversial issue of CCCTB. Taoiseach Enda Kenny himself described the policy as ‘tax harmonisation by the backdoor’. There is widespread consensus that any substantive change on the policy would carry enormous economic cost for Ireland, especially given our dependence on the multinational sector, while even mixed signals on the subject would cause damage to our widely held reputation as a reliable low tax economy.

“Reports that Irish officials are negotiating a form of words with the French Government on the subject are deeply worrying. I am calling on the Minister for Finance’s office to move immediately to clarify the situation and reassure the country that our policy of opposition, not just to any move on our corporate tax rate but also to any concessions on the tax base, remains as solid and absolute as ever.”