TAOISEACH'S STRATEGY:TAOISEACH ENDA Kenny has said he will wait for the result of the stress test on the Irish banks before attempting to get changes in the terms of the EU-IMF bailout.
Speaking in Brussels before the European Council meeting yesterday evening, Mr Kenny said he would prefer to deal with substance rather than theory.
He had told the president of the European Council, Herman Van Rompuy, about the necessity to wait for the outcome of the bank stress tests before trying to finalise changes in the deal.
“I spoke to President Van Rompuy yesterday and we discussed the question of the Irish position. Obviously the stress tests for the banks will not be concluded until next week,” said Mr Kenny.
“I think it is much more important to be absolutely clear about the extent of liability before we have any further discussions or negotiations,” he added.
The Taoiseach said he had agreed with Mr Van Rompuy to revisit the issue when the outcome of the stress tests became known and the extent of the problem was clear.
“I have heard figures bandied about of an extreme level and obviously I would prefer to see what the extent of the liability actually is.”
The outcome of the stress tests is expected to be announced in the next week or so.
A Government spokesman rejected the view that the decision to await the results of the stress tests represented a setback for the Irish case.
“We will continue our discussions until we are satisfied with the outcome,” said the spokesman, who added that there was no firm date for the conclusion of those discussions.
The spokesman denied that there had been a shift in the Irish position since Mr Kenny first attended a European Council meeting two weeks ago and said there had been no expectation that the issue would have been sorted out by today.
The Taoiseach, he added, would continue to engage with his EU colleagues about a range of issues including the common consolidated corporation tax base (CCCTB).
Fianna Fáil deputy leader and finance spokesman Brian Lenihan yesterday urged the Government to stand firm in opposition to the common tax base at the summit.
“The Government cannot leave the door open for participation in CCCTB. Two weeks ago, Taoiseach Enda Kenny himself said he opposed plans to establish a CCCTB and described this proposal as ‘the harmonisation of tax rates by the back door’, and not up for discussion,” said Mr Lenihan.
He added that the proposal would see the introduction of a single set of rules that companies operating within the EU could use to calculate their taxable profits. This taxable income would then be divided up between all the countries the institution operates in, according to national corporation tax rates.
“Fianna Fáil believes this is a Trojan horse and will ultimately lead to tax harmonisation. We have vehemently opposed the introduction of CCCTB over many years on the basis that we believe it would have very serious consequences for foreign and direct investment, a cornerstone of our economic policy,” said Mr Lenihan.