GOVERNMENT REACTION:THE COALITION is not afraid of calling a referendum on reform of the EU treaty, but will resist pressure from other member states to alter the Republic's corporate tax rate, Minister of State for European Affairs Lucinda Creighton has said.
She also warned that proposals for economic governance drawn up by Germany and France could face strong opposition at Friday’s EU summit, and called a credit downgrade threat against 15 euro zone nations a “wake-up” call to every country in the bloc.
“We have proposals from two member states, France and Germany, but there are still another 25 to consider,” Ms Creighton said yesterday in the Lithuanian capital. “I would not take it for granted that simply because initiatives emerge . . . that it is somehow automatic that they will be acceptable . . . on Friday. That is clearly not the case. This is a process of negotiation that involves 27 countries. And each and every one of us will have our say.”
Ms Creighton said the Government would not reject EU treaty changes simply because they would require a potentially tricky referendum.
“I don’t think our position would be simply to say No to things because they might involve a referendum. If something is in our interest and requires treaty change then a referendum should follow and we shouldn’t fear that.”
There would be no compromise on the 12.5 per cent corporate tax rate.
“Absolutely not. That is non-negotiable, that is a red-line issue for Ireland,” Ms Creighton said on the sidelines of a meeting of the 56-nation Organisation for Security and Co-operation in Europe, which this State will chair next year.
She also agreed with German finance minister Wolfgang Schaüble, that Standard Poor’s warning of a downgrade for 15 euro zone nations should act as spur ahead of the summit.
“This serves as a . . . wake-up call to a number of core member states who until recently said this is a problem of the south or periphery of Europe,” said Ms Creighton. It is clear that this a problem for the whole euro zone and EU, she added.