Corporate tax rate and energy hikes top the agenda for finance minister's EU visit

Finance Minister Paschal Donohoe 

Ireland’s corporate tax rate and the explosion in energy utility prices are likely to top the agenda for the Minister for Finance as he heads for Luxembourg for a day of meetings on Monday.

Paschal Donohoe is this morning expected to meet with the EU’s competition commissioner Margrethe Vestager to discuss tax issues.

With common consensus being that Ireland will shortly finally give up its coveted 12.5% corporate tax rate to appease hostility from its international colleagues, how that is likely to be achieved may play a large part in the discussion.

In the afternoon Mr Donohoe, who doubles as the president of the Eurogroup currency forum, is set to meet with European ministers to discuss inflation and energy prices.

That meeting will hear from the EU’s director for the cooperation of energy regulators Christian Zinglersen regarding the recent rapid hike in gas prices.

Gas, along with other fossil fuels coal and oil, has seen an exponential increase in price, by 250% since the start of 2021, as the world seeks to balance out the reopening of global industry versus ongoing blockages in supply chains.

In Ireland alone there have been 26 separate price increases among the nation’s gas suppliers since the beginning of the year, with the plight of the less well off likely to dominate discussion before Mr Donohoe announces his latest budget on Tuesday week.

The minister said that the “latest news” concerning the European economic recovery “remains robust”, though acknowledging the “uncertainty” hanging over supply chain disruptions and energy prices.

The afternoon meeting will also cover news from across Europe regarding how recovery plans for the post-pandemic period are faring across the bloc.