Daft Property - Irish Property News

Ireland can breach EU spending rules to boost economy... Ireland will be allowed to breach EU spending guidelines for two years and access significant EU funding ahead of schedule, under an EU-wide financial package to be announced this week. The package will provide a boost for the government, which is preparing for a major shortfall in the annual tax take. Initial estimates show a 25 per cent decrease in the corporation tax take in 2008 and a shortfall of more than 55 per cent in capital gains tax receipts. In a briefing with The Sunday Business Post in Brussels, Catherine Day, secretary general of the European Commission, said the commission stimulus package would contain ‘‘concrete and ambitious proposals’’ to help EU member states to deal with the economic crisis. Day said it was likely that countries would be allowed greater flexibility from the EU Stability and Growth Pact, which limits borrowing by member states to 3 per cent of GDP. The flexibility will be allowed for a two-y...