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Taoiseach Enda Kenny’s visit to Berlin to raise awareness of what Dublin and Berlin agree is Ireland’s “special case” has prompted some political demands for an Irish gesture in exchange for additional assistance. “As long as Ireland pursues tax dumping there can be no money and no guarantees for the Irish banking sector”, said Jürgen Trittin, the Green leader in the Bundestag with ambitions to be Germany’s next finance minister.
“While Chancellor Merkel hesitates on a European banking regulator so as not to have to help Spanish banks, and demands Greek social welfare cuts, she declares Ireland a special case and raises the prospect of help without any quid pro quo.” Politicians across Germany’s political spectrum see a link between banks lured to Ireland with the promise of low tax and their later collapse, followed by the EU-IMF programme.
The ruling CDU is less vocal on the tax issue as it does not favour a transfer of fiscal competence to Brussels. But, anxious not to leave an open flank, senior CDU officials in budgetary, finance and European affairs committees have confirmed this week that Ireland’s corporate tax rate is once more being discussed.