McCreevy’s corporation tax cut set to anger EU

FINANCE Minister Charlie McCreevy is to lower company taxes to 12.5% in this year’s Budget, a move which will anger our European neighbours.

Mr McCreevy’s decision means Ireland’s corporation tax rate will be by far the lowest in Europe, which will increase tension with other member states who say they are losing valuable foreign investment as a result.

Germany and France are among the most vociferous critics of Ireland’s low tax regime which is up to two-thirds lower than the European average.