Nice treaty could damage investment in Ireland Inc
Here are few select examples.
(1) Pascal Lamy, EU Trade Commissioner: 'a natural first step would be to harmonise the tax bases and to adopt minimum tax rates but the ultimate goal should be the creation of a European Corporate income tax whose proceeds would either finance the EU or be allocated to Member Statesto get there, we may need QMV on tax matters relating to the single market: controversial .... perhaps, but a logical development'.
(Financial Times, March 8).
(2) Lionel Jospin, French Prime Minister: 'I propose, in terms of corporate tax, that the tax bases should be harmonised and that a minimum rate should be fixed. This would be the first step towards a European tax furthermore, I propose that, Internal Market should be made by QMV [Qualified Majority Voting] and not by unanimity'.
(Election manifesto, March, 2002).
(3) Jacques Chirac, French President: [we need], 'genuine fiscal harmonisation in Europein an open, competitive Europe with a common currency, it is damaging for the French to always be taxed more than everyone else'.
(Le Monde, March 7)
The spectre of increased corporation tax was most famously raised by ex-German Finance Minister Oskar Lafontaine who wanted minimum rates of corporation tax in all EU countries.
One of the reasons Ireland has such a successful economy and attracted such high levels of inward investment is because we have a low corporation tax regime. I believe transfer of more power to a centralised EU will eventually lead to higher taxes through tax harmonisation.
This would likely lead to the flight of capital out of Ireland to cheaper labour markets overseas. This would be bad for the economy, bad for business and bad for labour.
For this reason I believe we should oppose more centralised EU control of our national government and economy and loss of our veto in important policy areas which the Treaty of Nice would allow.
Hermann Kelly,
Corrig Avenue,
Dun Laoghaire,
Co Dublin
