From IDA Ireland's perspective a favourable corporate tax regime alone will not attract and retain substantial investment as it is only relevant when a company can operate profitably in the marketplace. The Lisbon treaty enables Ireland to offer both - a low tax regime in the heart of a growing European marketplace.

EU Role in Foreign Direct Investment (FDI)

In recent weeks, IDA Ireland has noted much comment about the section of the Lisbon Treaty under which the EU's Trade Agreements with other countries are negotiated. This is known as the Common Commercial Policy (CCP) and for the first time this makes reference to Foreign Direct Investment (FDI). However, this reference simply gives formal recognition to the current status quo. Existing free trade agreements negotiated under the Common Commercial Policy today set out bi-lateral rules in relation to investment by EU companies in other countries.

These agreements are negotiated by the European Commission on the basis of a mandate given to it by the member states and must be subsequently approved by the member states. Furthermore, the Lisbon Treaty clearly stipulates that in areas such as trade in service, intellectual property and foreign direct investment where unanimity is currently required, this unanimity will remain the case in the future. Nothing in the Treaty poses a threat to Ireland's ability to continue to frame its FDI policy to meet our future needs.

"A yes vote on 12 June and the ratification of the Lisbon Treaty will enable a dynamic single European market to function properly as the EU grows and is crucial from a business perspective. It will certainly support IDA in winning high quality overseas investment and well paid jobs into the future, a critical component of making Ireland a leading knowledge-based economy" Mr. O'Leary concluded.

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