Fianna Fáil’s finance spokesman Michael McGrath said today Britain’s decision to opt out of the new EU fiscal integration deal could have “serious consequences” for Ireland’s financial services industry.
EU leaders decided yesterday to create a new intergovernmental treaty after Mr said he would not back any change to the Lisbon Treaty without a concession for the City of London financial market.
The move isolated Mr Cameron in Europe. Only Hungarian prime minister Viktor Orban backed him initially, but he changed his mind yesterday.
Mr McGrath said this would put Ireland’s financial services industry at a major disadvantage compared to London if the EU deal includes a new financial transactions tax.
“We could soon have a situation where the financial services industry in Ireland will be subject to a new transactions tax, but the City of London will be exempt,” he said. “Such a scenario could have serious ramifications for what is a critically important industry in Ireland.”
He said the Government cannot allow a situation where London becomes a more attractive base than Ireland because of a new tax, potentially putting the 33,000 jobs in the IFSC in Dublin at risk.
“Taoiseach Enda Kenny needs to urgently clarify if Ireland has committed to a new financial transactions tax and to state clearly what the implications of such a tax would be for Ireland given that the UK will be exempt.”