EUROPEAN COMMISSION chief José Manuel Barroso said acceptance of the fiscal treaty would be in Ireland’s interest as he and other leaders pressed Germany to back an expansion of Europe’s bailout fund.
He was speaking on the eve of a European summit in Brussels at which the EU will try to plot ways of overcoming the financial crisis and stimulating economic growth.
Although the leaders are set to call for rapid progress in the “examination” of the commission’s proposal to create a common business tax system in Europe, a senior European diplomat said that was not the same as calling for the rapid implementation of the plan.
The diplomat said Germany and France, chief promoters of the common consolidated corporate tax base plan, had not prioritised the initiative in the run-up to the summit.
Countries such as Austria, Sweden and the Netherlands have been expressing reservations about the plan, mirroring Ireland’s scepticism and that of Slovakia.
Speaking to reporters yesterday, Mr Barroso sidestepped the question of whether the referendum would make it easier for the Government to secure a concession to cut the cost of rescuing the former Anglo Irish Bank.
However, he backed the Taoiseach in his stance on the treaty. “All I would say is I support what the Irish prime minister said yesterday – Enda Kenny – when he said that treaty ratification would strengthen confidence in the relaunching of the Irish economy.
“I too am convinced that this treaty is very much in Ireland’s interest but ultimately that is a question which will have to be decided by the Irish people inasmuch as the Irish Government has gone for a referendum.”
EU leaders had been due at the summit to discuss an increase in the €500 billion lending capacity of the European Stability Mechanism permanent rescue net, but plans for a special euro zone summit tomorrow were cancelled when Germany said it was not ready to enlarge the fund.
“We believe we can do it, but we are still in February and I think we can have a good progress on this matter later,” Mr Barroso said.
Both Italian prime minister Mario Monti and Luxembourg’s leader Jean-Claude Juncker called for rapid progress on this front.
“If the approach to firewalls is constructive enough in Europe, I believe we will all be in a better position to face any further contagion effect or any resurgence of the crisis,” Mr Monti said.
Similarly, Mr Juncker said EU leaders would have to come to decisions by the end of March. “It would not be the first time we would be a little bit too late.”
At a committee hearing in the European Parliament, Mr Juncker said the notion of a bigger firewall against contagion “needed to mature further in some countries”.
There was speculation yesterday that Spanish premier Mariano Rajoy will call at the summit to ease the EU deadline by which his government must bring its budget deficit under control.