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EU's Catherine Day says keeping low tax policy means other cuts


He3

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It is for us to say what would work in a European context if a government doesn’t get its public finances under control. It is our job to ensure the euro remains strong. - Catherine Day

You may not be interested in Catherine Day. Heck, you may never even have heard of her. But she is interested in you. Well not you personally, but your country and how it is governed. Arthur Beesley conveys the thoughts of the Irish Secretary General of the EU Commission, and her priorities make for chilling reading:


“Every country can decide its own tax policy, but that is not the end of the story,” she said at a briefing for Irish journalists.

“So if Ireland decides it wants to keep a low corporation tax, it has to deal with the deficit in some other way and we will be saying: ‘Okay, that’s your choice. If you don’t deal with it that way, how are you going to do it?’”

[...]
The Government insists it will not change the policy but certain EU officials struggle to see how it can bring the deficit below 3 per cent without reviewing the corporation tax rate.

Asked whether the commission can force a state to change its policy, Ms Day said “No, we can’t and we wouldn’t”. In the budget area, “there’s never one answer, but other answers may be more unpalatable”, she said.

“We can’t make Ireland change that, but . . . perhaps public spending will have to be slashed even more severely. But those are national choices that we will not make,” Ms Day said.

“But what we will do, because it is our job to ensure that the euro remains strong, is to say that Ireland and every other member state has to have a credible path to putting its deficit back under control . . . It is for us to say what would work in a European context if a government doesn’t get its public finances under control.”


Top EU official says keeping low tax policy means other cuts - The Irish Times - Wed, Oct 06, 2010
 
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sondagefaux

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Don't assume that people haven't heard of Catherine Day.

Ireland's policy choices for reducing the deficit are to cut spending or raise taxes, or probably a combination of the two.

Alternatively, default is the nuclear option...
 

Nemi_

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But, begorrah and bejapers, isn't Catherine one of our own. Sure, she'd hardly sell out the Emerald Isle for a Big Job in Brussels.

Ireland's future in the EU

As she said herself
Ireland has preserved, to my knowledge, all of its key national interests intact as a member of the EU "club". Recent debates raised very few new issues – they are all familiar claims about something that the EU is about to impose on Ireland, but somehow it never happens…..
There's definitely something problematic when you discover both that the world operates just as you feared, and that you haven't done enough to prepare for it.
 

Passer-by

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So to sum up:

Ireland and every other member state has to have a credible path to putting its deficit back under control
If anyone is under the impression that we don't need to have a credible path to get the deficit back under control, then it is indeed chilling reading.

Most people though have figured that out a long time ago but just don't want the cuts & tax hikes to happen to them.
 

He3

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But, begorrah and bejapers, isn't Catherine one of our own. Sure, she'd hardly sell out the Emerald Isle for a Big Job in Brussels.

Catherine Day said:
Ireland has preserved, to my knowledge, all of its key national interests intact as a member of the EU "club". Recent debates raised very few new issues – they are all familiar claims about something that the EU is about to impose on Ireland, but somehow it never happens…..
Ireland's future in the EU

As she said herself There's definitely something problematic when you discover both that the world operates just as you feared, and that you haven't done enough to prepare for it.
Words like impose and us suddenly take on nuances...
 

He3

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Blood donors wanted to strengthen euro

So to sum up:

Ireland and every other member state has to have a credible path to putting its deficit back under control
If anyone is under the impression that we don't need to have a credible path to get the deficit back under control, then it is indeed chilling reading.

Most people though have figured that out a long time ago but just don't want the cuts & tax hikes to happen to them.
Not many people relish bleeding.

As Daniel Gros, Brussels Centre for Policy Studies, said on Prime Time last week -

Clearly the guarantee was a mistake.

Any govt official with a modicum of sense must have known there was a property bubble, and when it burst there would be massive effect on the banks.

Ireland will have to bleed for a decade.


Ms Day makes her priorities clear at least. If we have to bleed to keep the euro strong so be it.
 
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He3

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Pat Cox seems to be getting anxious:

A former President of the European Commission is maintaining the EU cannot move to force Ireland's hand on corporation tax.

There have been murmurings from various quarters in Europe that Ireland's corporation tax rate should be raised as a form of payback for the Commission's support during the country's economic woes.

However, Pat Cox said the guarantees obtained before the second Lisbon Treaty referendum are legally binding.

Mr Cox said: "Now that Ireland finds itself down, but not entirely out, I think that it is important that the powers-that-be in Europe should understand that Europe's word should be its bond."




Read more: Cox: Europe cannot force raising of corporation tax | Irish Examiner
 

Passer-by

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Not many people relish bleeding.

As Daniel Gros, Brussels Centre for Policy Studies, said on Prime Time last week -

Clearly the guarantee was a mistake.

Any govt official with a modicum of sense must have known there was a property bubble, and when it burst there would be massive effect on the banks.

Ireland will have to bleed for a decade.


Ms Day makes her priorities clear at least. If we have to bleed to keep the euro strong so be it.
Her priority is that:

Ireland and every other member state has to have a credible path to putting its deficit back under control
Every tax-payer will be "bleeding" for a long time while we pay back the borrowings we are incurring as a result of the out-of-control deficit.

It is a math issue, not a currency one.
 

TommyO'Brien

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Cox is not a former president of the Commission. He is a former president of the Parliament.
 

He3

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Cox is not a former president of the Commission. He is a former president of the Parliament.

The error is the Examiner's, oddly.

Apparently he was on radio today saying the EU 'owed us' for saying Yes to Lisbon. Anyone hear that?
 

hiding behind a poster

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Pat Cox seems to be getting anxious:

A former President of the European Commission is maintaining the EU cannot move to force Ireland's hand on corporation tax.

There have been murmurings from various quarters in Europe that Ireland's corporation tax rate should be raised as a form of payback for the Commission's support during the country's economic woes.

However, Pat Cox said the guarantees obtained before the second Lisbon Treaty referendum are legally binding.

Mr Cox said: "Now that Ireland finds itself down, but not entirely out, I think that it is important that the powers-that-be in Europe should understand that Europe's word should be its bond."



Read more: Cox: Europe cannot force raising of corporation tax | Irish Examiner

:roll: So Cox says something, and you claim that means he's "anxious". No doubt you'd have a big conspiracy if he'd said nothing, as well - "what has Pat Cox got to hide", blah blah blah.
 

ibis

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Eh, Ireland imposed the Stability and Growth pact on itself, as well as the euro. Complaining about it when someone points out that we're supposed to stick to what we signed up to is a bit sad, surely?

Mind you, it's par for the course in the current Irish climate of "don't look at me, I never benefited from the boom, it's all other people's fault". The Béal Bocht is back with a vengeance - but it would work better if we hadn't waved our new-found "wealth" in everyone's faces for most of the last decade.
 

He3

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:roll: So Cox says something, and you claim that means he's "anxious". No doubt you'd have a big conspiracy if he'd said nothing, as well - "what has Pat Cox got to hide", blah blah blah.

That's one way of avoiding the significance of his comments.

Not to mention Day's of course.
 

Al.

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That's one way of avoiding the significance of his comments.

Not to mention Day's of course.
It's not avoiding; it's evading.
 

LowIQ

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It is for us to say what would work in a European context if a government doesn’t get its public finances under control. It is our job to ensure the euro remains strong. - Catherine Day

You may not be interested in Catherine Day. Heck, you may never even have heard of her. But she is interested in you. Well not you personally, but your country and how it is governed. Arthur Beesley conveys the thoughts of the Irish Secretary General of the EU Commission, and her priorities make for chilling reading:


“Every country can decide its own tax policy, but that is not the end of the story,” she said at a briefing for Irish journalists.

“So if Ireland decides it wants to keep a low corporation tax, it has to deal with the deficit in some other way and we will be saying: ‘Okay, that’s your choice. If you don’t deal with it that way, how are you going to do it?’”

[...]
The Government insists it will not change the policy but certain EU officials struggle to see how it can bring the deficit below 3 per cent without reviewing the corporation tax rate.

Asked whether the commission can force a state to change its policy, Ms Day said “No, we can’t and we wouldn’t”. In the budget area, “there’s never one answer, but other answers may be more unpalatable”, she said.

“We can’t make Ireland change that, but . . . perhaps public spending will have to be slashed even more severely. But those are national choices that we will not make,” Ms Day said.

“But what we will do, because it is our job to ensure that the euro remains strong, is to say that Ireland and every other member state has to have a credible path to putting its deficit back under control . . . It is for us to say what would work in a European context if a government doesn’t get its public finances under control.”


Top EU official says keeping low tax policy means other cuts - The Irish Times - Wed, Oct 06, 2010
The EU let us down by failing to monitor or rein in our structural deficit while it was being built up. It flooded us with pro-cyclical cheap credit when what we needed was higher interest rates. It foists us with multiple referendums until we get the "right" answer. The euro has us in a stanglehold that will see us with a generation of lost growth and opportunity.
It's time to revisit membership.
 

He3

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He3

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Trichet says Ireland must keep the commitment to cut the deficit to 3 per cent by 2014 or else.
 

Al.

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Trichet says Ireland must keep the commitment to cut the deficit to 3 per cent by 2014 or else.
Or else what? :rolleyes: How about he shouts down Germany and their consistent 6 percent deficit? :mad: (but he'll never do that to his masters)
 

Passer-by

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The EU let us down by failing to monitor or rein in our structural deficit while it was being built up.
That was a domestic responsibility.

It flooded us with pro-cyclical cheap credit when what we needed was higher interest rates.
And if you go on a massive bender and wake up the next day with a massive hang-over, it really is the barman's fault because he wasn't charging higher prices for alcohol. Right?

It foists us with multiple referendums until we get the "right" answer.
A domestic decision and, based on the results, a popular one.

The euro has us in a stanglehold that will see us with a generation of lost growth and opportunity.
That's right, a small coin is forcing us to borrow 20 billion a year. No doubt changing the design on the coin would resolve everything. :)

It's time to revisit membership.
... so that, in the midst of a major economic recession, we can suddenly find almost 60% our exports subject to tariffs in their major markets. That should really help turn the economy round.
 

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