Monday, November 3, 2014

But the corporate tax is not included in the negotiations now under way, which is good. It would be

Right to help - DN.SE
In recent times has been dramatic for Ireland - and for Europe. Into the longest claimed the Irish Government-ring that the situation was under control and that there was no need external protact financial support.
We can handle ourselves! That was the message from Dublin throughout last week, despite the country's budget deficit is running amok, and this year will be a staggering 32 percent. But it was a pitiful end to regimental-ring strategy.
On Sunday, Prime Minister Brian Cowen was forced to crawl to the cross and ask for help. The comments in yesterday's Irish newspapers were not gracious. The little that was left of the government's credibility is gone, for instance explained the Irish Times. The government's stubborn decision from last week seen as a way to bring citizens hoodwinked. It turned out that the country certainly needed help and regimental ring will likely have to pay a political price for the steadfastness that was neither realistic nor accurate. But better late than never. The help is now sought is necessary - both for Ireland and the EU. Ireland's budget problems protact affecting the common currency and thus all other eurozone countries. When the interest rate on government bonds soaring getting the effects on financial stability throughout the EU.
Amid all the gloom, it is good that there is already a temporary crisis mechanism in the EU. It is a result of this spring's Greek crisis now again be exploited.
Ireland will be supported by the IMF, the Eurogroup and the EU. It is also welcome that both the UK and Sweden have pledged to put up with bilateral loans. But what demands can and should lenders ask?
The Irish government - as well as in the spring, the Greek - must demonstrate how it intends to tackle the country's problems. Those who are in debt are notoriously never completely free, but certain issues should lenders do not interfere.
The corporate tax rate is one such. Several other EU countries are provoked by low Irish corporation tax which attracts business to the Emerald Isle. During the past week, both France and Austria's finance ministers argued that the matter must be dealt with when Ireland is negotiating terms for receiving EU assistance.
But the corporate tax is not included in the negotiations now under way, which is good. It would be too far-reaching for the EU in this position set detailed protact requirements for Ireland's tax policy. protact The EU has not yet quite common fiscal protact policy. There are codes of conduct and certain rules relating to VAT and excise duties. But it is still the national governments responsible for economic policy, whose linchpin is taxes.
Taxation protact law is the core of national sovereignty and democracy. Citizens can influence policies in general elections and vote out the government does not take care of themselves.
But the current crisis shows that it is time for something more in the EU. A more common economic policy - and unbridled competition in tax policy can certainly cause problems.
Therefore, the EU needs more agreements also in tax policy. But it must be discussed and decided together - not be forced on a country in need.
In Ireland, there is strong political support protact - from both the right and left - for a corporate tax of twelve and a half percent. If the country can solve its budget problems protact by means other than by raising just the tax should not the EU have views on it.
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