Lisbon and Business
The Lisbon Treaty and business Danny McCoy gives an assessment of the relationship between the Lisbon Treaty and Irish commerce The events of the last year have raised serious questions about how we manage our economy, our place in the world and the appropriate action we must now take. A year on from the last Irish vote, the text of the Lisbon Treaty remains delicately-balanced. It is a fair and worthy compromise; a compromise that is supported by democratically-elected governments of every other member state in the European Union. The response to the crisis has created a blueprint on how best a small country can face challenges far beyond its control and has clearly demonstrated the absolute necessity of a collective approach to shared problems. Globally, while major pitfalls remain, there now appear to be early signs of some stability returning to economic life. The risk of a devastating collapse of the world financial system appears to have subsided. The treaty ensures that when necessary, Ireland can cooperate more with other European countries to address shared problems. As a result, Europe will be better able to face the many new challenges ahead; such as increased globalisation, energy supply, climate change, crossborder crime and the rise of India and China as economic forces. The Lisbon Treaty is about making Europe work better. This is important for Europe in itself, but also for Europe on the global stage where Europe needs as much of a competitive edge as possible. Importantly for Irish jobs and for the Irish economy, the treaty ensures that key economic interests are protected. Our ability to set our own tax policy is guaranteed. Ireland will retain its veto on decision-making in this area. Misleading claims that the treaty threatens Ireland’s tax, including corporate tax, regime has been repeatedly exposed as nonsense. The independent Referendum Commission has stated categorically that there are no changes in the treaty with regard to tax. Ireland will retain its veto on decisionmaking in this critical area. The text of the protocol guaranteed to the Irish Government is clear and self-explanatory: “Nothing in the Treaty of Lisbon makes any change of any kind, for any Member State, to the extent or operation of the competence of the European Union in
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will develop in a way that suits
Irish interests protected. However, the case for Lisbon is not about championing the benefits of the status quo or highlighting the risks associated with rejection, it is about much more than that: the EU is about reaping the benefits. For Ireland the EU has always been about new opportunities, and any objective assessment of our membership to date would support this. The EU is, at its very essence about European countries coming together to solve shared problems and create shared opportunities. As a small nation, trading on the edge of Europe, the open, rules-based system that the EU creates, enables Irish companies, IBEC Members, to compete more effectively with those in the largest European countries. The global world of business is changing rapidly. The Lisbon Treaty modernises the EU so it can respond to new challenges and continue to be an engine of economic growth and prosperity into the future. The treaty includes specific provisions to enable the EU to deal more effectively with issues that are a major concern to Irish business, such as the security of our energy supply, cross-border crime, counterfeiting and climate change. IBEC has always supported the EU because of the enormous opportunity it provides for Irish businesses to grow and compete. Each previous treaty has created new opportunities and has helped create more jobs and Lisbon is no different. The outcome of the next referendum will define Ireland’s future relationship with Europe, and therefore, with the world at large. A positive outcome is vital to ensure Ireland remains a constructive and dynamic partner in Europe. That is where our interests lie, that is where our future rests. On Friday 2nd October we have the chance to send a clear message to our European and international partners that we are open for business and are keen to play a full and active part in a reformed Europe. Business needs the Lisbon Treaty for Ireland to move confidently into the future. We need foreign business to further invest in their operations here to support and create jobs. The Treaty’s ratification is more important now than ever.
protected.”
Danny McCoy is Director General of the Irish Business and Employers Confederation (IBEC)
Danny McCoy
relation to taxation.” This veto on decision-making in this critical area will definitely protect our interests. Ireland will remain among one of the most attractive places in the world to invest. Our legally-binding guarantee is therefore an important step forward and presents a new deal. These unequivocal, explicit assurances have provided even greater legal certainty and should lead to a more informed debate this time around. What’s more, the agreement that all member states will have a permanent European Commissioner, should Lisbon be passed, is a major change in response to a concern of many voters. A rejection of the treaty would create uncertainty for business and throw the EU into a crisis; this is not in the interests of Ireland or Irish business. In contrast, if we vote to support the treaty, Europe will develop in a way that suits Ireland, and with
“A rejection of the treaty would
create uncertainty for business and throw the EU into a crisis; this is not in the interests of Ireland or
Irish business. In contrast, if we
vote to support the treaty, Europe Ireland, and with Irish interests
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