Kenny calls for more flexible EU in dealings on crisis

TAOISEACH ENDA Kenny has called for more flexibility from the EU in dealing with countries in economic difficulty and he warned that “a one-size-fits-all approach risks fitting nobody”.

Addressing a special sitting of the Dáil to mark Europe Day, Mr Kenny also called for the European Central Bank (ECB) to be more accountable.

He stressed that while the “independence of the ECB is quite rightly closely guarded” there “may be ways in which to improve its accountability and thus underpin the legitimacy of its actions”.

As some 30 members of the diplomatic corps watched from the public gallery, Mr Kenny suggested that a “more flexible approach” by the EU to economic difficulties “could have delivered a more custom-made and effective solution to the different problems faced by member states.

“We are not alone in finding ourselves in serious difficulties and it is increasingly clear to me that each set of problems requires its own distinct set of solutions. A one-size-fits-all approach risks fitting nobody.”

He warned that Ireland was “carrying a very heavy burden of debt. Without strong growth, questions of sustainability will remain. There is no doubt that a reduction in the interest rate on the monies we are borrowing from Europe would be a meaningful and appreciated measure.” He said the Government was continuing efforts to secure that reduced rate.

“There was and in some quarters still is,” he added, “genuine concern for the future stability of the euro, the shared currency in which we have all invested so much economic and political capital and on which the economic security of so much of the continent rests.”

Mr Kenny said Ireland “deeply appreciates” the support of EU partners to get the economy back on track. But he warned other member states against arguing for changes in Ireland’s corporate tax rate.

“It does nobody any credit to call into question or to seek to link movement on this issue to relief elsewhere. In my strong view, it does damage to Europe’s standing in the eyes of the Irish people.”

The Taoiseach stressed that under EU treaties “member states retain the right to determine the tax mix most suited to their economic circumstances”.

For Ireland, “our 12.5 per cent corporation tax rate is and will remain a cornerstone of this country’s economic policy. It cannot be changed without our consent and, to put things as plainly as possible, that consent will not be forthcoming.”

He stressed that Ireland’s fundamental interests would be damaged “if we stand on the margins or allow ourselves to be isolated”.

The Taoiseach was “greatly saddened” that the “shine” had gone off Ireland “and that we are not regarded as good team players any more by some of our European colleagues”.

“Sometimes difficult and unwelcome things have to be said” but “Ireland needs to play a positive and constructive role in the life of the union because it is the best way to promote and defend our national interests”.

He was also concerned that recent events “will take the shine off Europe for Irish people. We in this country have consistently shown ourselves to be strong supporters of the European Union, but this cannot be taken for granted. ”