Ireland could face a loss of its tax-exempt status if Ireland leaves the European Union, a senior Irish Government official has warned.
Ireland’s new Prime Minister Eamon Gilmore said on Friday that he had told Mr Orr to look into a possible loss-of-tax-free-status in Ireland, adding: ”We have to make a decision, it’s not a matter of if but when.”
Ireland’s first minister, Leo Varadkar, was quoted as saying the EU had given Ireland a “blank cheque” to leave the bloc, and the Government had not discussed a deal.
Mr Gilmore told the Irish Times: ”I told Mr Varadky that he has to look at it, and he has been asked to look and make a determination.”
It is not a good time to be in Europe.
The economic situation has deteriorated and it is very difficult to negotiate.
I will be asking him to consider that, and I will make a statement at the earliest opportunity.”
Mr Varadki said he would ask for a full briefing of the Government’s position on the matter before deciding whether to take Ireland out of the bloc.
He told The Irish Mail on Sunday: ”What we are looking for is a clear direction from the EU, we have had no indication that the European Commission will be a constructive partner, and if we are not there we will leave.”
Mr Gilmore said the Government would be ”taking decisions on the basis of the EU’s position”.
He added: ”Ireland has always maintained that we are a close European Union member and we would not seek to leave.”
He added that the Government was determined to negotiate a deal with the EU.