Signal_summer_17_web

| EUROPEAN SECURITY |

for other Europeans?28 In any case, deeper European cooperation in is true that Germany has been reluctant to take on full-blown combat
the defence of Europe could not be credibly carried out via the EU, roles abroad. But its beefed-up support for the coalition against
since the UK will depart, and some EU countries (such as Austria, the socalled “Islamic State”, following the November 2015 terrorist
Ireland, and Finland) are not yet willing to join a military alliance. The attacks in Paris, alongside its willingness to lead one of NATO’s four
EU, unlike NATO, is not an inter-governmental military alliance (let new battalions in Eastern Europe, suggests that Germany realises
alone moving towards creating a federal European army under the that it needs to be prepared to contribute more militarily to European
political control of Brussels based EU institutions), and is far from security.32 France has sometimes been suspected of being too
capable of defending its territory from attacks by external states like Russia-friendly, but it cancelled the delivery of two Mistral amphibious
Russia.29 Depending on the precise nature of any US military scale- assault ships to Moscow after the 2014 annexation of Crimea. Britain
back, something like a strengthened European pillar of NATO would has long been accused of being anti-EU military cooperation. But
probably be required.30 In the worst case, perhaps even a revived the EU’s most successful military mission to date, an anti-piracy
Western European Union – a now-defunct military alliance of ten operation in the waters off Somalia, has been run from a British
European governments that preceded EU defence policy, separate military headquarters. In essence, European military cooperation –
from the EU and NATO –, might be needed. 31 In particular, deeper whether through the EU, NATO, or other formats – is a tale of three
European cooperation for defending Europe will require much closer cities, because it can fully work only if Berlin, London, and Paris
political and military alignment between Berlin, Paris, and London. agree. Encouragingly, in November 2016 a joint meeting of French,
One misfortune of Brexit is that it is occurring just when British, British, and German defence chiefs took place in Paris. Regardless
French, and German defence policies have been showing some of what the Trump administration in the US does, the minimum
signs of convergence in recent years. Each country is aiming – to challenge now for France, Germany, and the UK will be to ensure
varying degrees – to be able to meet as broad a spectrum of tasks that the British exit from the EU will not make political alignments on
as possible, maintain the ability to defend their territories, and also European defence more difficult to achieve.
deploy abroad. Each of them has promised to increase defence
spending in the coming years, reflecting the difficult security crises Daniel Keohane is a Senior Researcher at the Center for Security
that Europe faces today. All three have made important contributions Studies at ETH Zurich, where he works on national defense
to NATO’s reassurance measures to allies in Eastern Europe, such as policies in Europe, EU military cooperation, and NATO. (This
participating in Baltic air policing. Moreover, all three have deployed article as originally published at http://www.css.ethz.ch).
forces to help fight Islamist terrorists in Africa and the Middle East. It Reprinted with permission.

Sources:
1 Daniel Keohane, “An EU HQ? Let them at it”, in: Royal United Services Institute, 11.10.2016.
2 Sophia Besch, “EU Defence , Brexit and Trump: The Good, the Bad and the Ugly”, in: Center for European Reform 14.12.2016.
3 Daniel Keohane, “Policy or Project? France, Germany, and EU defence ” in: Carnegie Europe, 02.08.2016.
4 UK Ministry of Defence , Defence Secretary speaks at Université d’été, Paris, 05.09.2016.
François Hollande, France’s European Vision, Jacques Delors Institute, 06.10.2016.
6 Daniel Keohane, “NATO, the EU, and the curse of Suez”, in: Carnegie Europe, 14.10.2016.
7 Ben Farmer / Kate McCann, “Britain ‘can still join EU military missions after Brexit’”, in: Daily Telegraph, 20.07.2016.
8 NATO, NATO Secretary General welcomes discussion on strengthening European defence , 27.09.2016.
9 Malcom Rifkind, “Neither ‘hard’ nor ‘soft’: how a smart Brexit should look”, in: European Leadership Network, 18.10.2016.
10 Nicole Koenig, “EU External Action and Brexit: Relaunch and Reconnect”, in: Jacques Delors Institut – Berlin, 22.11.2016.
11 Daniel Keohane, “The Renationalization of European Defence Cooperation”, in: Strategic Trends (2016), 9–28.
12 UK Prime Minister’s Office, The government’s negotiating objectives for exiting the EU: PM speech, Lancaster House London, 17.01.2017.
13 Malcolm Chalmers, “UK Foreign and Security Policy after Brexit”, in: Royal United Services Institute, 01.2017.
14 Charles Grant, “Mrs May’s emerging deal on Brexit: not just hard, but also difficult”, in: Center for European Reform, 20.02.2017.
15 Daniel Keohane, “Is Britain back? The 2015 UK Defence Review”, in: CSS Analyses in Security Policy, no.185 (2016).
16 UK National Audit Office, Ministry of Defence : The Equipment Plan 2016 to 2026, 27.01.2017.
17 Full transcript of interview with Donald Trump, in: The Times, 16.01.2017.
18 Philip Stephens, “Boris Johnson forgets the message”, in: Financial Times, 21.02.2017.
19 Patrick Donahue, “Germany’s Former U.S. Envoy Warns of ‘War Without Weapons’ Between Trump, EU”, in: Bloomberg, 13.02.2017.
20 Charles Grant, “Mrs May’s emerging deal on Brexit: not just hard, but also difficult”, in: Center for European Reform 20.02.2017.
21 Full transcript of interview with Donald Trump, in: The Times, 16.01.2017.
22 Thomas Wright, “Trump’s 19th Century Foreign Policy”, in: Politico, 20.01.2016.
23 Rick Lyman, “Enthusiasm for Trump in Poland Is Tempered by Distrust of Putin”, in: New York Times, 19.11. 2016.
24 Malcolm Chalmers, “UK Foreign and Security Policy after Brexit”, in: Royal United Services Institute, 01.2017.
25 Patrick Donahue / Matthew Miller, “Germany Forging Post-Brexit Defence ‘Road Map’ With the UK”, in: Bloomberg, 19.02.2017.
26 International Institute for Strategic Studies, The Military Balance (2017).
27 Daniel Keohane, “Make Europe Defend Again?”, in: Carnegie Europe, 18.11.2016.
28 Oliver Thränert, “No Shortcut to a European Deterrent”, in: CSS Policy Perspective 5, no. 2 (2017).
29 Daniel Keohane, “Samuel Beckett’s European Army”, in: Carnegie Europe, 16.12.2016.
30 Jean-Marie Guéhenno, “Why NATO needs a European pillar”, in: Politico, 11.02.2017.
31 Ann Applebaum, “Europe needs a new defence pact – and Britain can lead it”, in: Financial Times, 15.02.2017.
32 Daniel Keohane, “Constrained Leadership: Germany’s New Defence Policy”, in: CSS Analyses in Security Policy no. 201 (2016)

| SPRING ‘17 | | 49











| FINANCE |

Where there is a Will, there is a tax
efficient way……….

A Will is one of the most important documents a person will execute during their lifetime in
relation to their assets yet nearly two thirds of Irish people do not have a Will in place. Coll
& Co answer the important questions in this regard.

Ireland has one of the highest death taxes in the world 2. Should you consider leaving assets to
(currently at 33%) which forces families annually to sell grandchildren?
inherited family homes or mortgage them in order to fund
inheritance tax. In order to minimise Irish inheritance tax, ensure Leaving assets to grandchildren and certain ‘in laws’
you have a tax efficient Will in place. can reduce inheritance tax for your children.
Some key things to consider to make your Will more tax
efficient: 3. Do any of the beneficiaries of your estate
have a disability (physical or mental)?
1. Have you suitable structures in place in rela-
tion to the family home to ensure it can pass A beneficiary with a disability can receive certain inher-
tax free to a child? itances free of inheritance tax if the proper structures
are put in place from the outset under the Will. Indeed,
The family home is often a person’s most valuable such a beneficiary may not be suitable to inherit an as-
asset. Despite the exemption from gift and inheritance set outright and a trust structure can be put in place to
tax (Dwelling House Exemption) being substantially re- hold assets for the beneficiary’s benefit, often tax free.
stricted by the Finance Act 2016, there are still oppor-
tunities to pass on the family home by Will to a child 4. Do you have agricultural assets?
free of inheritance tax. Certain conditions apply and it
is important suitable tax and legal advice is taken at The market value of agricultural property (such as a
the time of making a Will. farmland, farmhouses, buildings, livestock, pasture

| SPRING ‘17 | | 55

| FINANCE |

etc.) situated in Ireland or a EU member state can her death. In this instance the daughter will pay inher-
be reduced by 90% for the purposes of calculating itance tax on 100% of the value of the shares. If the
inheritance tax (for example, a qualifying agricultural shares in the business had been left in a trust under
asset with a value of €400,000 would have a value of the mother’s Will for the benefit of the daughter they
€40,000 for inheritance tax purposes). In addition, it is could have been held on trust until such time as all of
possible to leave cash to a beneficiary to be invested the conditions of the business relief could have been
in agricultural property within two years which can satisfied and inheritance tax paid on a 10% value of
have its market value reduced by 90%. the shares (instead of 100%).

5. Do you have business assets? 7. Do you have minor children or other vulner-
able beneficiaries?
Similarly to agricultural assets, the taxable value for
inheritance tax purposes of qualifying business assets Children under eighteen do not have legal capacity to
can be reduced by 90% provided certain conditions hold assets. Always ensure a proper trust is in place
are met. For example, shares in a family business hav- to hold assets until children are suitable to inherit. You
ing a value of €300,000 would have a taxable value of may have beneficiaries who have addictions, banking
€30,000 for inheritance tax purposes. issues or marital issues and a trust is a very useful tool
to protect such persons.
6. Always consider the use of Trusts.
8. Are you in a relationship but unmarried?
More often than not, it is through the use of correctly
drafted trusts in Wills, that beneficiaries can avail of There is no such thing as a ‘common law spouse’ and
the relevant inheritance tax reliefs for the family home, persons in a relationship who are unmarried have no
agricultural assets and business assets. A trust can legal or tax rights. It is very important to ensure you
be used to hold the assets until a point in time when have a proper Will in place to protect each other on
the beneficiary can satisfy the conditions of the rele- death and understand the tax implications of doing so.
vant relief.
The above information should be treated as a guide only. If you
For example, a mother wishes to leave shares in a would like us to review your Will or provide you with assistance
family business to her daughter tax efficiently. The in making a tax efficient manner (we work closely with a local
mother leaves the shares in the business to her legal and trust advisor), please contact Coll & Co Chartered
daughter under her Will absolutely. On the mother’s Accountants, Barna, Galway. We can be contacted by phone:
date of death she owned the shares for one year and 091 592080 or by email: [email protected].
eleven months. The shares do not qualify for the 90%
reduction for business relief as the legislation requires Coll & Co specialise in personal tax and pensions advice. Coll
that the mother must have owned the shares in the & Co, chartered accountants is regulated by the Institute of
family business for a minimum of two years prior to Chartered Accountants Ireland to provide investment advice.

56 | | SPRING ‘17 |

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