Sarkozy behaves more like a political pygmy than a statesman
IRELAND is being overcharged -to the tune of 3% -on the interest rate imposed by its European partners on its €85 billion bailout package negotiated by the outgoing FF government. The EU is profiting from Ireland’s misery. The new government has sought a modest 1% reduction in the interest rate. However it has run into strong opposition from Germany and France. German opposition appears to have softened somewhat.
However the behaviour of Sarkozy President of France is preposterous. The French are prepared to veto a 1% reduction unless Ireland increases its 12.5% corporation profits tax. To a certain extent this tax rate compensates for the fact that Ireland is an island on the periphery of Europe and thus has higher transport costs. The low tax rate has aided the attraction of foreign industrial investment to the country. Notwithstanding this Ireland has a 15% unemployment rate and a large debt burden. Sarkozy is endeavouring to bully a small country into submission all in the interests of political expediency. He faces the French electorate in a presidential election in 2012. So he seeks to impress the voters by trampling on a small nation’s rights. What a brave little man. Now of course Sarkozy will not pick a row with a large power like China . No he much prefers to bully a small country of 4.5 million people on its knees economically. Sarkozy is engaging in hypocritical posturing as France uses various strategies to reduce its real level of Corporation Profits Tax. He promised in the course of the Nice Treaty referendum re run that Ireland’s corporation profits tax would not be altered if the country passed the treaty. So Sarkozy is not alone a cynical political schemer but also untruthful. He has disgraced the French people by his antics on this issue. He is behaving more like a political pygmy than a statesman
FINANCE Minister Michael Noonan has warned France that our corporation tax rate is not up for negotiation. Under no circumstances can Ireland yield on this. To do so would be to commit economic suicide. If this were to occur foreign companies would pull out of Ireland. The EU could then whistle goodbye to its money. France would lose out. Indeed the Euro could collapse .
Sarkozy is threading on thin ice. He apparently wishes to sabotage the Irish economy. He is playing with fire all in the interests of his own reelection
Perhaps he might care to ponder on the following: If you owe the bank €100, that's your problem. If you owe the bank €100 million, that's the bank's problem. Bury the Irish economy Mr Sarkozy and the Irish debt becomes your problem.
Failure by Germany and France to treat Ireland fairly will ultimately cost both countries their economic prosperity as the Euro and some large German banks collapse. Malheureusement Sarkozy est un nain politique. Oh for the days of a Helmut Kohl or a Willy Brandt or a Konrad Adenauer.