The policy and confidence vacuum is dragging pundits out from every corner breezily predicting the demise of Ireland's Corporation Tax rate as we doff our hats to foreign paymasters. Despite the economic uncertainty, we along with our European neighbours still operate under the rule of law. So before we buy into the reportage that suggests our CT rate will hit 17.5% (the specific number gives this notion undeserved credibility) or that the policy of CT harmonisation within Europe is growing momentum, let's remind ourselves of a few facts.

• The EU Taxation Commissioner, Algirdas Semeta, has stated his view that tax competition is a component of the EU Single Market.
• While there are European proposals due on standard methods of calculating the amount of company profits which are taxable, there are no proposals to standardise or harmonise Corporation Tax rates.
• EU Tax policy is still governed by the Lisbon Treaty, not by German MEPs with a track record in left wing tax policy, nor ambiguous comments by EU Commissioners. The Lisbon Treaty does not permit our Corporation Tax rate to be changed by external forces.
• By EU standards, Ireland is a low tax jurisdiction overall, and because of the Exchequer deficit and the cost of the bank bail-out, that will have to change. But we are not a low Corporation Tax jurisdiction. Ireland's Corporation Tax take as a percentage of GDP was 2.9% in 2008. By comparison, Germany's Corporation Tax take for the same year was only 1.1% of GDP. Despite our low headline rate, our Corporation Tax regime is more efficient in levying tax than the regimes in other countries with rates in excess of 30%.

We need to be more robust, and challenge the motivation of suggestions that our Corporation Tax regime must change.