THE EUROPEAN COMMISSIONER behind Ireland’s plans to unveil a four-year budget strategy next month has said it is inevitable that Ireland’s ‘low tax’ economic regime will have to come to an end over the next ten years in the wake of the banking bailout.
Speaking to reporters this morning after meeting with the EU’s finance ministers, Rehn was asked if Ireland’s corporation tax rate should be raised, and said that while it was up to the local government to decide concrete ideas, the era of Ireland being a low-tax economy relative to the rest of Europe would come to an end.
“I would not rule out any option at this stage since we know that Ireland is not going to be in the coming decade – it’s a fact of life - Ireland will not continue as a low tax country,” the Finn said.
“Rather, it will become a normal tax country in the context of the European Union.”
Rehn added his support to the government’s initiative of indicating a four-year budget strategy in which it will try to bring the budget deficit within 2.9% of GDP, under the EU limit of 3%.
Earlier, opposition politicians said they would refuse to consider themselves bound by Brian Lenihan’s four-year plan if they came to power, and demanded that the government liaise with them in setting out the nation’s financial plans.
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