Ireland resists corporate tax rise
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France and Germany are putting pressure on Ireland to increase its low corporate tax rate in exchange for an EU bail-out, but have faced strong opposition from the Irish Government.
According to the Financial Times, Ireland’s deputy prime minister Mary Coughlan told parliament the country’s 12.5 per cent corporate tax rate is not up for debate.
She said: “It is non-negotiable.”
Ireland has been resisting aid from the EU for almost a week despite mounting debt problems in the country’s banking system.
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Readers' comments (1)
Tom Scott | 19 Nov 2010 2:04 pm
If Ireland was to back-track it would wave goodbye to any chance of recovery and would be stuck in permanent recession - a little like it was before.
It was the property bubble that caused Ireland's problems. Low corporation tax fixed their previous financial problems by attracting and supporting business, jobs and growth.
Europe should follow Ireland's lead on this - not force them to be as uncompetitive as most of Europes economies.
Do we really want an economy like France's?
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