All tax policies must be agreed unanimously, so Ireland retains an effective veto
This article specifically relates to harmonising legislation on turnover tax, excise duties and other forms of indirect taxation (approval subject to unanimity of the Council of Ministers).
As Peter Sutherland has pointed out, it relates, therefore, to taxation on goods. Corporation tax is a form of direct taxation and is not affected by this article. At any rate, the ECJ (Case C-338/01) has already ruled that the term “fiscal provisions” covers all areas and aspects of taxation, which must be provided for on a unanimous basis.
Therefore, Ireland maintains a veto on any proposed harmonising legislation under the terms of Article 113. The Lisbon Treaty is an agreement by 27 countries. It was negotiated with difficulty (for example, there was an issue of contention raised by the Polish government during talks). It was negotiated by governments across the political spectrum, including, for example, the socialist-led Spanish government; France, led by the centre-right and Britain led by an apparently socialist, but effectively centre-right, party.
So, for an MEP to attempt to instil unjustified concerns among the Irish electorate regarding taxation in order to undermine the treaty’s chances of passing, as a whole, is disappointing.
The Lisbon Treaty will pave the way to a truly European energy policy, greater EU co-operation on fighting drugs, human and arms trafficking and bringing new social objectives to the EU on the eradication of poverty, the promotion of full employment and fighting against social exclusion and discrimination. His point, among other unwarranted red herrings raised by the no campaign, is very petty given that the Lisbon Treaty covers a much wider picture.
Clearly, in the debate here, as Franklin D Roosevelt said, “we have nothing to fear but fear itself”.
John Kennedy
19 Knocknashee
Goatstown
Dublin 14
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