Taoiseach Brian Cowen has said no proposals were made at the EU summit about changing Ireland's corporate tax rate of 12.5%. However, Cowen agreed during negotiations on the EU/IMF bailout to accept a Review of Ireland's competitive corporate tax rate by the European Commission, that review is an integral part of the EU/IMF bailout, however, the full implications of the Fianna Fail sell-out will not be known for several months to come.
This denial by Cowen is similar to the denial of the Sinn Fein/IRA leadership in 1994 when they told their followers that decommission was never part of any cease-fire agreement, however, as we now know Gerry Adams is just a big a liar as Brian Cowen.
Mr Cowen said the rate was a cornerstone of Ireland's industrial policy and a issue of national competence, rather than the EU. These weasel words will be exposed as nothing more than soundbites in the coming months as Ireland falls deeper into economic debt and the jobless figures spiral out of control.
Speaking at the end of his last summit, he said the European Commission was to bring forward proposals on changes to corporate consolidated tax base, but Ireland is 'very sceptical' about the plan.
The Taoiseach said when the plan was published, the Irish Government would look at it. But the position of Dublin was clear, he said, adding the proposals would not achieve the stated aim of improving Ireland's competitiveness.
Mr Cowen said an unscheduled meeting of eurozone countries, which will examine new proposals on the debt crisis, would take place after 9 March.
This means that this was Mr Cowen's final summit, and whoever becomes Taoiseach after the General Election will almost immediately be participating in intensive negotiations on the euro's future.
Sarkozy calls for corporation tax agreement
EU President Nicolas Sarkozy has said that there should be agreement on a 'new basis for company profit taxation.'
He said it didn't mean identical policies from one country to the next, but to 'bring countries closer together instead of moving further and further apart.'
There was no question of taking decisions on details, but to show that there was 'clear determination on the fact that we want this pact and we want economic governance and that we want convergence.'
He was speaking after EU leaders met for several hours to discuss wide ranging changes to the rules governing the eurozone.
It was not immediately clear if President Sarkozy was refering to the corporate taxation base or corporate tax rates, however, Sarkozy is well aware that Ireland is in the middle of a general election and was not going to expose Cowen's lies at this point.
Many of the ideas are contained in a so called Pact For Convergence and Competitiveness. The broad outlines were discussed today, while the detail, such as the issue of corporate tax, will now be looked at by the President of the European Council Herman Van Rompuy and eurozone capitals.
A final decision is expected at the Spring summit on 24-25 March.
Leaders also considered how to improve Europe's energy supply, as well as job creation proposals from Ireland's EU Commissioner, Máire Geoghegan-Quinn.
Ireland was represented by the Taoiseach Brian Cowen - his last EU Council meeting.
A senior EU diplomat told The Irish Observer that, from an Irish point of view, the timing could not be worse, as this is Mr Cowen's last full Council meeting and the new Taoiseach will only be in office a couple of weeks when the big decisions are taken in late March.
