From The Sunday Independent – Our leaders must now take a harder line with Merkel and Sarkozy than before:
It is simply a question of exercising a demand for more power.
Corporate tax harmonisation would attract more and more corporate activity to the heart of the union and away from the geographical periphery. France and Germany do not want tax competition to act as a centrifugal counter-force to the centripetal forces of economic concentration that favour them.
It would be economic and political suicide for Ireland to make the gesture they are asking. And Sarkozy and Merkel couldn’t give tuppence for Ireland’s interests — let alone our survival. It would suit their game for Ireland to survive, albeit in a weakened condition, an economic and political protectorate or province rather than a fully functioning sovereign partner.
Instead of a gesture, Ireland needs to send a very strong signal to Sarkozy and Merkel.
“The interest rate you imposed on us is punitive and intended to be dissuasive. It is doing very serious damage to Ireland’s interest…
We expect Europe to sustain the euro. That involves assisting member states in economic crisis. Assistance means assistance. A punitive interest rate is not assistance. It is worsening our crisis.”