Ireland takes the EU presidency with Big Tech paying 40 per cent of its tax bill

TL;DR

Ireland takes over the EU Council presidency on 1 July with a tech-heavy legislative agenda, but its economy depends on the very companies those rules target. Two firms, understood to be Apple and Microsoft, paid 40 per cent of all Irish corporate tax in 2024.

Ireland takes over the rotating presidency of the Council of the EU on 1 July, inheriting a legislative agenda that includes proposals to curb Europe’s reliance on American tech, simplify the bloc’s digital rulebook, decide whether to ban children from social media, and overhaul telecom regulations. The country holding the presidency is supposed to act as an honest broker, finding common ground among 27 member states rather than advancing its own interests.

That role is complicated when the broker’s economy runs on the companies being regulated. Sixteen of the world’s 20 largest tech firms reportedly operate hubs in Ireland, and more than 100,000 people work in the sector.

The tax question

Ireland’s fiscal watchdog, the Irish Fiscal Advisory Council, warned earlier this year that just two companies, understood to be Apple and Microsoft, paid almost 40 per cent of all corporate tax in Ireland in 2024. That amounted to roughly €11 billion, with a third firm, understood to be Eli Lilly, bringing the share to 46 per cent.

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“It’s widely acknowledged, including by the Irish Fiscal Advisory Council, that Ireland is too reliant on Big Tech firms,” said Michael McNamara, the liberal MEP who co-led the European Parliament’s package to roll back elements of the AI Act. He said Ireland needs to be “clear-eyed about the pressures that will come during the Presidency” from companies headquartered in Dublin.

The enforcement record

Ireland’s presidency agenda runs through the same regulatory territory where it has faced sustained criticism. The Irish Data Protection Commission, the body responsible for policing GDPR compliance by tech firms that base their European operations in Dublin, has been accused of being too lenient on enforcement and of allowing a revolving door between the regulator and the private sector.

The Irish Council for Civil Liberties has called for Ireland to recuse itself from all digital files during the presidency. Lynn Boylan, a left-wing MEP from the opposition party Sinn Féin, said Ireland’s economic model is “deeply tied to keeping a small number of overwhelmingly American tech corporations comfortable,” creating an “obvious conflict.”

What Big Tech wants

Tech firms made their priorities clear in a public consultation Ireland held ahead of the presidency. CCIA Europe, the Big Tech lobby group, called for Ireland to “double down” on simplifying tech rules and “firmly reject” sovereignty provisions that could exclude foreign firms.

Meta urged Ireland to “adopt a leadership position in shaping Europe’s digital agenda,” calling for a “complete overhaul” of the bloc’s digital rules and a “pause on implementation” of new regulations. It also said Ireland should bring its “unique relationship with the U.S.” to the fore during the presidency.

Bram Vranken, a researcher at the transparency group Corporate Europe Observatory, said that while companies lobby every country holding the presidency, “in the case of Ireland they know they have more leverage.” Irish officials pointed to the fact that they published all lobby submissions received during the consultation as evidence of transparency.

The honest broker test

Ireland’s defenders point to its track record. During its last presidency in 2013, Ireland pushed GDPR negotiations so hard that diplomats from other member states slept in tents to maximise negotiating time, earning praise from then-Justice Commissioner Viviane Reding.

Two EU diplomats, granted anonymity to speak candidly, told Politico that Ireland had been “very fair” and “very professional” on previous digital files. Niamh Smyth, Ireland’s minister of state for artificial intelligence, rejected the idea that Big Tech’s presence would compromise the presidency.

“We have had many presidencies before, and we have always done our job well and done it objectively,” Smyth told Politico. Billy Kelleher, a liberal MEP from the governing Fianna Fáil party, added that Ireland should “not be embarrassed about being a success story.”

Whether simplification tips into deregulation will define how the presidency is judged. The question for the next six months is whether Dublin can separate what is good for its economy from what is right for the bloc.