We should tell EU to stick ‘tax haven’ insult

LAST week an influential French MP arrived in Dublin to persuade our political leaders to sacrifice up to €3bn a year to help achieve president Macron’s ambition for European solidarity. The cost to Ireland for the French president’s vanity project? Two national children’s hospitals, as much as €3bn every year – that is how much revenue we would lose if corporation tax was harmonised across the EU.

President Macron’s VIP ignored the enormous cost and implored the Government and opposition to support his boss’s project. The politicians kept a diplomatic silence, but President Michael D Higgins moved quickly to back the French president’s plan on Thursday.

The French MP’s arrival in Dublin coincided with a report from the European Parliament that accused Ireland and six other EU countries of acting as tax havens.

The recommendation adopted by the EU parliament is ‘non-binding’ which means it is toothless and worthless – and rooted in resentment for Ireland’s success in attracting global corporations.

OUTGOING MEP Brian Hayes agrees: ‘There is a lot of jealousy about Ireland’s success in attracting foreign direct investment. And the perception of Ireland as a tax haven is nothing new.’ Hayes says that Macron’s tax harmonisation project is a real threat to Ireland: ‘Where could Ireland get the €2bn to €3bn a year if it is knocked from the tax take? And if we allowed that to happen it would be absolutely irresponsible.’

President Macron’s gofer should be told firmly: ‘Non merci’ – and the EU parliament instructed to stick its insulting accusation.

We have always been the too-eager-to-please kids in the EU creche: but can we afford to remain as the EU’s perpetual Mr Nice

Guy? Nice guys inevitably become fall guys. And EU team players like Ireland get a pat on the head – while those who ignore the rules suffer no consequences.

Some of our politicians and more of our senior public servants, almost a superior ‘Brahmin caste’, perhaps see pleasing Brussels as an opportunity to extend high-flying careers beyond Ireland.

But all things are changing utterly in the EU.

Macron’s dream of an integrated Europe (a project of wishful political thinking shared by our attention-seeking President Higgins) is already eclipsed by à la carte membership of the EU.

His own country, France, with Italy, flout the Euro budget rules, yet borrow at the 2% available to members. Most member states ignore the plastic bags directives and nearly as many central EU states illegally interfere with their judiciaries.

POLAND, Hungary and Austria flatly refuse to accept EU quotas on immigration. Austria defies EU law by cutting child benefit for immigrants from poorer EU members – but it will take years for the European Court of Justice (ECJ) to rule on it. And fewer cases from more powerful countries are not being presented to the hard-pressed and under-resourced ECJ.

The truth is the EU has no means to enforce its rules – and that is exploited by persistent rule-breakers like Poland and Hungary. And when other states see there are no consequences, they follow suit.

Nigel Farage sold Britain a pup, scaring them with the threat of a United States of Europe. From the Urals to the Atlantic it is now obvious that the EU will never be a European federalist superstate.

Instead of Brexit, it would have been much easier for Britannia to waive the rules. Britain could have, like Poland, Austria and Hungary, kept immigrants out and ignored protests from Brussels. But Mrs May chose to invoke Article 50 and invite political and economic chaos.

And irony of ironies: Britain is leaving just as the EU is reverting to its original mission: an expanding single market.