Rumour Control ie the bailout/nonbailout of the Irish republic

[Louis VI the Fat]

companies have switched to other countries like Poland or even further afield seems like tax is not the only reason to site a factory in a country.

Taxes are not the only criterium indeed.

Microsoft is perfectly environmentally friendly and without any strenous labour whatsoever. Therefore MS chooses to be based in the tax haven of Ireland.
Other companies can gain a competitive advantage by producing enviromentally unfriendly, therefore they settle in the EU country with the least environmental protection. Yet other companies require dangerous, unhealthy work. They settle in the EU country with the lowest social standards.

In this manner, Europe being a common market, companies can go shopping for the country willing to bend over backwards most for their particular requests. We are turning ourselves into India. Little nine year old girls picking batteries for twentyfive cents with disastrous environmental damage.

There is nothing clever, or 'competitive' about mature democracies in a common market undercutting each other. It is silly, unsustainable, and not at all conducive to creating either a healthy and wealthy society nor a thriving business environment.



'Race to the Bottom' - http://en.wikipedia.org/wiki/Race_to_the_bottom