http://www.theglobeandmail.com/repor...rticle1800866/
Facing debt problems, Ireland picks tax status over bailout deal
ROME— From Wednesday's Globe and Mail
Published Tuesday, Nov. 16, 2010 9:59AM EST
Ireland is resisting a bailout out of fear that any deal would jeopardize its economic sovereignty and force it to scrap the low-tax system that made Dublin a magnet for global companies.
Ireland’s stance stems in good part from its desire to protect its rock-bottom corporate tax status, the feature credited with launching its economic miracle in the 1990s, turning one of western Europe’s poorest countries into one of its wealthiest, with remarkable speed, analysts and economists say.
“The government does not wish to give up its preferential corporate tax system, which EU [European Union] financial assistance might require,” said Mike Lenhoff, chief strategist in London for Brewin Dolphin, a British investment firm.
Any EU bailout, especially one with the Washington-based International Monetary Fund at its side, could come with considerable loss of economic sovereignty because assistance would come with conditions, ranging from strict lower debt and budget deficit ratios to higher revenue targets and tough austerity programs.