FT reports that Germany & France demand Corporation Tax change

Boy M5

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In fact the piece on FT.com (& presumably in the paper tomorrow) describes it as a sticking point the French & Germans are pushing hard for us to lose it. One EU source said they saw it as our Causus Belli suggesting that the French & Germans would have to swallow us retaining it.

The story seems well sourced with verification by French, German & EU sources.

The French apparently describe it as predatory, whilst also pointing out we are about to take EU money....

FT.com / Europe - Irish showdown over corporate tax
 


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And to think that the Government today stated that this was non negotiable.

LOL who will backdown first?
 

sport02

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I heard Dick Roche talk about our corporation tax on BBC NEWS 24 a short while ago, he wasn't sounding very confident to be honest.
 

eoghanacht

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It's the only thing FF have to bargain with, i give them until lunchtime tomorrow before they capitulate
 

McDave

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The French apparently describe it as predatory, whilst also pointing out we are about to take EU money....
Strictly speaking, we'd be paying back whatever we borrow, with interest.

I'm sympathetic to the view that the 12.5% rate is a beggar-thy-neighbour rate. In my opinion a rate of 20% is a fairer one. Still, it's ultimately our call. That's the law.
 

Clanrickard

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eoghanacht

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Will this thwart any agreement?
It will in it's hole.

Do you think Germany and France will let little old Ireland ruin their Euro plan, they have us by the short and curlies and they are just beginning the squeeze.

I expect they'll throw the Gov a bone and let them hold onto their salaries or something then Cowen and Lennihan can make a statement about how this was the best strategy moving forward blah,blah,blah......
 

Wakeupcall

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This will make me hate the eu for life and I will spend my life being outwardly negative about the eu as a whole because of it.
 

Sariel

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Why don't they go and recapitalise the German and French banks that will get smashed if we default. The ECB\NCB has no other option but to support Irish banks or they will bring down the financial system. More benefit will come by slashing the corporation tax than by hiking it.
 

Fish

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In fact the piece on FT.com (& presumably in the paper tomorrow) describes it as a sticking point the French & Germans are pushing hard for us to lose it. One EU source said they saw it as our Causus Belli suggesting that the French & Germans would have to swallow us retaining it.

The story seems well sourced with verification by French, German & EU sources.

The French apparently describe it as predatory, whilst also pointing out we are about to take EU money....

FT.com / Europe - Irish showdown over corporate tax
If true and considering that it has been sounded often enough in Europe by some said French and German detractors, it is plausable. Mind you I do wonder as to how the same people expect Ireland to repay the bailout when a large cohort of the MNC sector rounds up the wagons.

Will the last person out please turn off the lights.

P.S. Re Lisbon-Vote yes for jobs!:)
 

MattM

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Think about it here.

Things are ************************e, without Europe we'd be done in.

This is what happens lads, when you screw up and run out of money you don't have many choices, your policies brought it upon us and now we expect to bargain our way out of this.
 

GreenIsGood

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Strictly speaking, we'd be paying back whatever we borrow, with interest.

I'm sympathetic to the view that the 12.5% rate is a beggar-thy-neighbour rate. In my opinion a rate of 20% is a fairer one. Still, it's ultimately our call. That's the law.

More ball-less sucking up to Germany and France.

Pussie.
 

MattM

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If true and considering that it has been sounded often enough in Europe by some said French and German detractors, it is plausable. Mind you I do wonder as to how the same people expect Ireland to repay the bailout when a large cohort of the MNC sector rounds up the wagons.

Will the last person out please turn off the lights.

P.S. Re Lisbon-Vote yes for jobs!:)
It begs the question which is less palatable; an EU loan with a change to 20% Corp Tax or a Bilateral loan from the UK.

It a tough one!
 

Boy M5

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Strictly speaking, we'd be paying back whatever we borrow, with interest.

I'm sympathetic to the view that the 12.5% rate is a beggar-thy-neighbour rate. In my opinion a rate of 20% is a fairer one. Still, it's ultimately our call. That's the law.
I wonder if interest is on a sliding scale depending on our tax rate?

What do you reckon to the argument that we are a peripheral small economy like Malta & Cyprus (who I also believe have low tax rates) unconnected to mainland Europe, so we need to offer something to offset higher distribution costs for products (including extra time needed to get to large W European makets in a just-in-time World)?
 

dakid

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They can take their "sticking points" and shove 'em up their collective orifices! If Biffo et al capitulate on this there will be a revolution!
 

havesomeimagination

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such a pile of bs about the CT rate - no one has done any tests to see what percentage of firms would actually leave in response to a modest hike in the rate. from a purely practical point of view some effort should be made to figure out to the optimum tax rate - why does everyone assume it has to be 12.5%? not that I think we should do anything for the EU we should tell them to piss off - expropriate the banks assets by calling a bank holiday and seizing the deposits & setting up a new state bank, burn the bondholders & let the banks fail it couldn't be worse than signing up to another 80 billion in loans.
 

budgie29

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Back down or we default! That should win the argument.

I agree, tell Germans and French to take a hike.

I think we will have to eventually rejoin British pound. Our economy is structurally close to theirs and most of our trade is with UK and US. We can still be part of EU. They have proven to be much better friends in these times of crisis than our continental neighbours.

I used to be very pro-European but in times of crisis you learn who yr real friends are.
 


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