Ministers 'Furious' Over German VAT Leak

A Labour TD has described his fury that German officals were handed a leaked outline of the Irish government's Budget plans that contain a rise in VAT.

TD Dominic Hannigan said he was furious that German legislators were given sight of a leaked confidential options paper saying it was "outrageous" that a German committee would see and discuss any Irish budget proposals before the Irish Government had "made any decisions".

The leak contained details of Government plans for a 2% hike in the top rate of VAT to 23% and a flat rate €100 household levy. According to reports, the plans were inspected by a German parliamentary committee this week as Taoiseach Enda Kenny held talks with German chancellor Angela Merkel.

The documents were then sent to the finance ministries of all 27 EU states.

“The Irish people have every right to be outraged that their economic affairs are being spoken about in foreign parliaments," Mr Hannigan said.

He added: “The sad truth is that this farcical situation is a direct result of the IMF/EU bailout agreement signed by the last Government. This is the legacy of Fianna Fail’s 14 years in power and getting the country out of this mess is this Government’s priority.

“The Government is making the hard decisions now so that we can regain our economic sovereignty. The road to recovery we have outlined will not be easy but it is necessary so that we can free ourselves of the binds of the bailout agreement.”

The documents discussed were leaked options papers that the Government shared with the Troika (European Heads) as part of the bailout agreement.

Mr Hannigan emphasised that no decision has been made about the Budget next month as Ministers are still discussing the fairest way to make the needed budgetary savings.

“The Troika need to put in place security measures so that we can trust that this will not happen again. We are all aware of the importance of our international reputation to our economic recovery. The Troika must remember this too."

(DW)