Ireland criticised over corporation tax

IRELAND’S CORPORATION tax policy has come in for renewed criticism with a senior member of the German Greens describing it as an “unjustified privilege” and “illegitimate preference”.

Sven Giegold said the bond spreads or cost of borrowing for Ireland “have reached Greek levels, creating a crisis for the euro zone”. He said Ireland would have to “negotiate” on its corporation tax rate, if the State was to seek funding from the European stability fund.

“You cannot ask for European solidarity while not being ready to accept a certain level of harmonisation in the tax system,” he said.

Mr Giegold also criticised Ireland, Spain and some eastern European states, “for not daring to interfere with a booming property market”.

He was speaking in advance of a debate and vote today in Strasbourg on a deal between the parliament and the EU Council of Ministers on the establishment of four authorities to monitor and supervise the financial sector.

Mr Giegold is co-ordinator of the parliament’s approach to the Securities and Markets Authority.

He said the State had suffered “from an excessive boom and politicians in Ireland just as in some eastern European countries and in Spain, have allowed this boom to happen”.

Mr Giegold said that if Ireland sought access to the special stabilisation fund, Germans “would ask questions first as whether there is more co-operation to harmonise certain tax measures in Europe”.