Low tax contributed to Ireland's debt problem - EU report

Monday 24 February 2014 10.48
The Eurogroup report will be voted on at the European Parliament in Strasbourg
The Eurogroup report will be voted on at the European Parliament in Strasbourg

A report recommending that European finance ministers should make good on their commitment to Ireland to deal with the bank debt burden will be voted on in the Economic and Monetary Affairs Committee of the European Parliament tonight in Strasbourg.

RTÉ News understands that the Eurogroup report says low tax in Ireland, among many other things, contributed to the severity of the problem.

However, it does not say that the low corporate tax rate contributed.

It calls for the European Stability Mechanism to be moved from intergovernmental to community-based and recommends the creation of a European Monetary Fund.

It also calls for a "growth task force" made up of member states, the European Investment Bank, the private sector and civil society.

The non-legislative report evaluating the structure, the role and operations of the Troika in euro area programme countries presents conclusions regarding the future crisis management set-up in the EU, including recommendations for institutional reform.

The Troika consists of the European Commission, the European Central Bank and the International Monetary Fund.

Irish MEP Gay Mitchell is a member of the committee and the vote is expected at around 7.30pm.