The Irish Times view: A veto worth keeping
Ireland may have to give ground to retain our corporate tax rate amid EU reforms
Minister for Finance Paschal Donohoe has slapped down a proposal from the European Commission to abolish national vetoes on EU taxation policy. Photograph: Nick Bradshaw
Minister for Finance Paschal Donohoe wasted no time in rejecting the European Commission’s blueprint to end national vetoes on major tax issues and replace it with qualified majority voting. “Ireland does not support any change being made on how tax issues are agreed at EU level,” he said.
Setting corporate tax rates is a national competence and not one that Ireland will give away lightly, given that our 12.5 per cent rate is a central part of our offering to lure multinationals to invest here. Successive governments have made it clear to investors that this rate would not be increased.