Ireland could be on the hook for its corporation tax policies and its treatment of multinationals. Pic. Bryan Meade 28/04/2020


France and Germany have proposed a €500bn fund to shield the European economy. What does it mean for Ireland?

Depending on how it is allocated, Ireland could receive between €2bn and €4bn from the Franco-German proposal. But as a net contributor to the EU budget, the fund could cost Ireland around €8.45 billion over the years. And there is also an ominous warning around future tax reform.

20th May, 2020 - 6 min read

Since the start of the Coronavirus pandemic, a number of economists, including myself, have been calling for the European Union to take a bold step towards federalisation, and issue a pan-European bond to fund fiscal responses to the pandemic. This Monday, Germany and France made a move in this direction by announcing the proposal for a European Union-funded recovery fund.

The key distinguishing features of this fund, as compared to all of its predecessors, are:

  1. It will be funded by the new bonds issued by the EU...
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