Kenny: Deal close on EU budget

A deal on the EU’s multiannual financial framework could be reached at the trilogue scheduled for next week, the Taoiseach, Enda Kenny, told an audience in Dublin yesterday.

Ireland has been leading negotiations as part of its six-month EU presidency to reach agreement on the EU budget for 2014-2020.

Mr Kenny said it was important that a deal was reached because there were important proposals aimed at tackling the growing youth unemployment crisis across the region.

The Taoiseach was speaking at the launch of ‘The Case for Investing in Europe 2013’ organised by the American Chamber of Commerce Ireland. He said he was also hopeful of securing a mandate for the next phase of negotiations on a US-EU trade deal.

Mr Kenny said it was critical that a deal was reached between the two largest trading blocs in the world because it would mean an extra two-to-three million jobs each to both economies.

Since taking office in Mar 2011, this Government’s first major challenge was repairing the country’s tarnished image, he said. “We were locked out of external markets, we had lost credibility and nobody knew as a country where we were heading.”

He rejected recent criticism of Ireland’s tax system. “Our position is that our system is statute based. We have a headline rate of 12.5% and an effective rate of 11.9% according to the World Bank. We made it clear to the US senators that we do not comply with any of the characteristics of a tax haven.”

In testimony given by Apple executives to the US Congress, senators Carl Levin and John McCain described Ireland as a tax haven.

The Taoiseach said there were no ‘brass plate’ companies operating out of Ireland. However, the Government would be at the forefront of negotiations on establishing a new international tax code.

There has been progress in a number of key areas under Ireland’s EU presidency, particular in efforts to create a banking union.

Ireland had the best demographics among any EU country over the next 25 years, he noted.

“It is like being a windsurfer. You don’t look at a wave that is a 100 metres out. You look for a good wave a half a mile out and you get on that one.”