American Chamber Warns Ireland To Resist EU Red Tape

by Jason Gorringe, Tax-News.com, London

08 October 2003

The Chief Executive of the American Chamber of Commerce in Ireland, Joanne Richardson, has urged Irish legislators to resist the tide of over-regulation emanating from the European Union, warning that new EU laws could deter American firms from doing business in the Republic.

Speaking at a business luncheon hosted by the American Chamber in Cork on Monday where Irish MEP Pat Cox (President of the European Parliament) was guest of honour, Richardson spoke of the potentially damaging effect EU tax harmonisation could have if the result was Ireland losing its very competitive rate of corporate tax.

"Ireland in particular needs to maintain its current corporation tax environment, as it is one of the key initiatives in attracting foreign direct investment," Richardson urged, warning that: "Excessive EU legislation has the potential to add greatly to the burden of doing business throughout the Union as well as making Europe an expensive location for US multinationals."

The ACC chief's argument is particularly relevant given the level of investment pumped into the Irish economy by US-based firms in recent years. With 570 American firms employing more than 90,000 workers, the US is the largest single source of foreign investment in Ireland, according to figures quoted by the Irish Examiner.

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