Consider Ireland’s future in the EU including in relation to economic and financial matters, social policy, defence and foreign policy and our influence within the European Institutions The Sub-Committee considered Ireland’s future policy approach within the EU in the four areas referred to in its Orders of Reference in order to gain an understanding of all the possible issues of concern. With these issues in mind, the Sub-Committee also examined the options available to Ireland in terms of its future engagement with the EU and the implications of these options. 1. The delivery of this term of reference has been divided into two sections. The first section addresses Ireland’s future policy approach within the EU in respect of a number of policy areas. These policy areas are economic and financial policy, social policy, defence and foreign policy and Ireland’s influence within the EU institutions. The second section considers the options open to Ireland in terms of its future within the EU. There are a number of options and possibilities open to Ireland in terms of dealing with the current situation, each having potential implications for Ireland’s future in the EU. Ireland’s Future Policy Approach 2. Through its consideration of the four policy areas defined by the SubCommittee’s terms of reference, six distinct issues have emerged which the Sub-Committee believes are of most concern to Ireland in terms of its future in the EU. These issues are also the main areas of concern which certainly contributed to the Lisbon Treaty referendum result. The issues are: taxation; workers’ rights; public services; socio-ethical issues; foreign and defence policy, including the protection of Ireland’s traditional policy of military neutrality; and Ireland’s influence within the EU. Taxation 3. The Sub-Committee discussed in detail the potential impact of developments in the EU on Ireland’s ability to control its direct taxation policy, in particular its corporate tax rate. Ireland’s low corporate tax rate of 12.5 per cent, together with our membership of EU’s single market, has been a key factor in attracting large amounts of foreign direct investment to Ireland. This has contributed immensely to Ireland’s economic and social progress. 4. The Irish Taxation Institute, in its evidence to the Sub-Committee, was very clear. The Lisbon Treaty would not affect Ireland’s sovereignty in relation to direct taxation policy.
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