Tax rates sacrosanct

THERE has been much comment in recent days regarding the importance of closer European integration, but European fiscal union is about as likely as Elvis and Lady Gaga appearing at the Kinsale Arts Week next year.

European federalism was dead as soon as enlargement of the eurozone to 17 states made a super state inconceivable. Angela Merkel knows how to solve the problem, but she does not know how to get re-elected if she delivers the solution.

Her election is not until 2013 so there are many more bumps along the road. Our best course of action is to encourage closer co-operation and help shape an agreement that facilitates the introduction of the euro bond without referendums and without relinquishing the power to determine our own tax rates, which must always remain sacrosanct.