Rejection will isolate republic, warns Lenihan

A NO vote to the Lisbon treaty will isolate Ireland and damage its economy, including its ability to attract foreign direct investment (FDI), Finance Minister Brian Lenihan warned yesterday.

The minister said FDI required Ireland to be at the centre of the European Union and rejecting the treaty could result in isolation.

Mr Lenihan was addressing the influential American Chamber of Commerce to the EU in Brussels.

He said many US companies had located their European headquarters in Ireland because of the country’s active role at the centre of the union, he said.

“A no vote would be a step into isolation and would send an extraordinary signal. We should be at the vanguard of Europe and not turning our back on the project,” he said.

FDI in Ireland, he said, exceeded €30 billion which was the highest per capital investment in any EU country, with trade having increased 80-fold, leading to an increase in jobs and wealth.

The minister assured the representatives of many of the US corporations located in Ireland who attended the briefing, that the treaty did not change our corporation tax structure and continued Ireland’s veto over any proposals in taxation matters.

Mr Lenihan said the country remained opposed to efforts to introduce a harmonised tax base for cross-border companies. “We see this as the first step on a slippery slope,” he said.

He criticised the anti-treaty campaign for suggesting the treaty was being foisted on Ireland and did not reflect the country’s key concerns.

“Ireland was at the forefront of writing this treaty,” he said.