Photo: Dimitry B via Flickr
The biggest point of contention, it seems, in the ongoing Irish bailout talks is the 12.5% corporate tax rate.It’s the fundamental aspect of Ireland’s industrial policy, as it’s allowed the country to siphon all sorts of corporate behaviour from its European neighbours, especially the UK. It’s actively damaging to the rest of Europe.
So obviously as a condition of a bailout, the rest of Europe wants to see that rate hiked, and to Ireland this would be devastating.
If the UK caves on this it’s a humiliated cuckold: It’s like someone whose spouse cheats, and then not only are they forgiven, but they continue to do it publicly, and they stay with them.