Barroso says Lisbon Treaty 'good for Ireland'

There is “no chance” of a harmonised tax regime within the European Union being imposed on Ireland, the president of the European Commission José Manuel Barroso has said.

In Dublin today, Mr Barroso said Irish voters had nothing to fear from the Lisbon Treaty, the deal signed by 27 member states in Lisbon on December 13th, 2007.

Speaking after a brief meeting with Taoiseach Bertie Ahern in Government Buildings today, Mr Barroso said Ireland would continue to have a veto on taxation proposals regardless of the outcome of Treaty referendum in June.

“Current discussions on a Common Consolidated Corporation Tax Base (CCCTB) have nothing to do with the reform treaty,” he insisted.

The president said he believed the treaty was “good for Europe and good for Ireland” but he was here to listen and not to tell people how to vote in the upcoming referendum on June 12th.

The Taoiseach greets European Commission José Manuel Barroso

Mr Barroso is on a two-day visit to Ireland where he addressed a plenary session of the National Forum on Europe in Dublin Castle on the Lisbon Treaty.

He told the forum this afternoon that "the eyes of Europe, if not the world" would be on Ireland in the run-up to the June 12th referendum. He insisted the treaty, if ratified, would make the EU more efficient and effective.

“The treaty will greatly simplify the voice and even the face of the EU for the rest of the world," he said.

He also said there is nothing in the new treaty that will affect Ireland’s tradition of military neutrality.

“Here too unanimity will continue to be the rule and each member state retains a veto over proposals or crisis management missions,” he said.

Minister for Foreign Affairs Dermot Ahern also told the Forum the Treaty would secure Irish neutrality and tax sovereignty.

“It recognises our common interests while at the same time respecting vital individual national interests, such as taxation and defence in our case, where decisions can only be taken by unanimity,” he said.

Mr Ahern said the two central principles of the Union were solidarity and equality.

“By signing the Reform Treaty in Lisbon all 27 member states reaffirmed their faith in these principles.

“The practical effect of these two principles is visible in today’s Europe. It is the most peaceful and prosperous region on earth,” he added.

Thousands of farmers held a demonstration in Dublin today to coincide with Mr Barroso’s visit and to protest at proposals currently being discussed at the World Trade Organisation (WTO) talks which they say would destroy Irish farming.

Mr Barroso said it would be better for Ireland and Irish farmers to get a deal at the Doha trade talks now rather than later.

“As a small open economy, that commanded 4 per cent of the world services market, Ireland had a lot to gain from a deal,” he said.

Asked what the consequences would be for Ireland and Europe if the referendum was not passed, Mr Barroso said one consequence would be a continued concentration on the institutions at the expense of “delivering real results for the people like growth and jobs”.

“We have been discussing this treaty for eight years, I think it is about time we agreed on it.”

He said the treaty was necessary to make decision-making more efficient in a larger union and to bridge the gap between the institutions and the populations.

Before addressing the National Forum on Europe, Mr Barroso also held a working lunch with Tánaiste Brian Cowen and held discussions with the social partners.

The event is one of a series of plenary sessions and regional public meetings being organised by the Forum in the run-up to the referendum on the Treaty of Lisbon (EU Reform Treaty).

After the meeting with Mr Barroso, Mr Ahern said the position on taxation in the EU was clear.

"Decisions on taxation must be unanimous," he said.

Earlier today the Taoiseach said the notion that the Reform Treaty would pave the way for imposition of a Common Consolidated Corporation Tax Base (CCCTB) was unfounded: the Reform Treaty maintains the unanimity rule on taxation matters in the existing Treaties.

Describing the CCCTB concept as a “red herring” in the Reform Treaty debate, the Taoiseach said that Ireland, along with many other Member States, is strongly opposed to CCCTB.

“There is no proposal on the table, and if there were, Ireland, along with many other Member States, would oppose it and veto it,” he continued. “It is just a distraction, but if people really are worried about it, they should vote ”YES“ for a Reform Treaty which ensures we keep our veto.”

Sinn Féin MEP Mary Lou McDonald told the National Forum on Europe meeting the Lisbon Treaty was a “disappointment and a failure in terms of democratic reform”. She believed that the Commission would bring forward its proposals for a Common Consolidated Tax base this September.

Ms McDonald said she believed the Commission was being far from “straight” with the Irish public. “If the plan is for the Commission to leave people in ignorance of the Treaty, if the plan is that the Irish people will act simply as a rubberstamp for this Treaty, well then I think you will find that the response will be, to coin a phrase, ‘No way José’”.

Former MEP Patricia McKenna of the People’s Movement claimed that there was a conspiracy between the Commission President and the Taoiseach to try to "hoodwink" the Irish people on the issue of taxation.

“I think it’s pretty inappropriate for the Commission to come here as you’ve done today and interfere with the internal decision of the Irish people. Our rights were provided to us through our constitution and it is only the people who can actually make that decision if they want to hand over those rights and I think the commission is bound by the existing Treaties. Lobbying to change those to your benefit I think raises questions," she said.

Mr Barroso's visit follows one by German Chancellor Angela Merkel on Tuesday, during which she urged Irish voters to accept the Treaty.

Ms Merkel told the Forum that the proposed reforms would mean the European Union would continue to flourish. She added that if ratified, the Treaty would enable states to challenge major issues together with the weight of 500 million people behind them.

The Treaty is designed to provide the EU with modern institutions and more efficient working methods.