Investment concern over enlarged EU

INWARD investment to Ireland could be damaged by the expansion of the EU with the new member States able to offer investors lower levels of corporation tax.

According to a major study of the impact of EU enlargement on Ireland by Goodbody Stockbrokers, many of the countries joining next January have lower corporation taxes and are expected to cut them further to win investment. As one of the main beneficiaries of investment, particularly from the US, this could have a negative effect on the economy.

The report also says that having benefited enormously in the past from EU structural funds, Ireland can now expect to be a net contributor to the EU budget.