Saying Yes to Nice will put pressure on to increase taxes
At present, each EU State has a veto on tax matters, but that veto goes with Nice. Under Nice’s provisions for so-called “enhanced cooperation”, a sub-group of eight or more members can agree to harmonise taxes among themselves and use the institutions of the union for that purpose, even if the others disagree.
Ireland’s low tax rate on company profits is the principal economic policy incentive we have to keep foreign capital and attract new foreign investment.
