Taoiseach Simon Harris has stated that Ireland would resist any attempts by the European Union to standardise corporate tax rates across its member states. There are ongoing talks at the EU’s second day of the summit in Brussels endeavouring to bolster the economic competitiveness of the collective nations.
Ideas on the agenda encompass the reintroduction of a proposal from 2015, aimed at establishing a single market for capital, unifying various national markets and optimising the movement of money and capital within the EU, but has struggled to gain traction for some time.
This suggested policy shift has encountered resistance from Ireland along with a substantial number of other countries. The key issue appears to be the implications of an EU-wide capital market union which could centralise new legislation and enforcement in certain nations, notably France.
Such a shift would require consolidation of national insolvency laws and enhanced alignment in tax and regulation of new market rules. Reportedly, France supports the idea, with the suggestion that the Paris-based European Securities and Markets Authority (ESMA) ought to play a more substantial role as a regulatory authority, under the potential new arrangements.
Mr Harris, arriving at the summit on Thursday, voiced favour for allowing individual countries to retain stewardship over any new rules or regulations. “This thought of centralised regulatory functions applying to several, disparate markets does not serve the best interests of all nations,” said Harris.
He advocated for a capital markets union that acknowledges the apprehensions of EU members. Regarding corporate tax laws, he stated Ireland has no intention of promoting any harmonisation: “We are not working towards seeing any regulatory compliance in our corporate tax laws,”. The council meeting was set to review some problematic aspects of the proposal.
In the past, criticism has been directed at Ireland for its 12.5% rate, and recently they had consented to raise it to a new global minimum of 15%.
Apparently, several member nations object to the current draft text concerning the capital markets union, viewing it as biased towards the French stance.
Charles Michel, the President of the European Council who presides over the summits, has announced in recent times that a dialogue on these proposed changes must be facilitated.
Talks have restarted surrounding the formation of a capital markets union, forming a part of Mr Michel’s broader scheme for establishing a fresh European competitiveness agreement. This is aimed to keep the European Union from lagging further behind large global powers such as China and the United States.