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Bank bail out deal and Ireland’s attitude to corporate tax rules raised with Minister Noonan in Brussels

Press Release

Tuesday 8 Nov 2016

Minister Michael Noonan met MEPs in Brussels today in a joint dialogue on Ireland’s economy post bailout and following European Commission’s Apple Tax ruling.

Speaking at the Economic and Monetary Affairs Committee meeting, Nessa Childers MEP asked the Minister “How do you expect any EU partners to take Ireland seriously when you try to make a case that Ireland’s historical and geographical context warrants reasonable accommodation, if the Government absolutely stonewalls the EU on matters such as Common Consolidated Corporate Tax Base (CCCTB)?”

Ms Childers also asked the Minister: “Perhaps you could consider reminding them of the promise to retrospectively recapitalise the banking sector, to break the link between sovereign and banking debt, in exchange for agreeing to it (i.e. CCCTB)”

“The Minister did not address my point about recapitalising the banking sector. Meanwhile the view across many EU countries is that Ireland was bailed out by the EU, and that our government continues to reward foreign direct investment with unreasonably favourable tax deals for non-EU multinationals. This was raised by a number of MEPs at the meeting today.

“But the figures show that Ireland 42% of the EU bank debt is being paid by Ireland. While the banking crisis cost Berlin €40bn, Ireland was deemed liable for €41bn. With fractions of the population and GDP of the EU’s biggest state, the crisis has cost Ireland 25% of GDP and Germany 1.5%.”