Obama deals €2.5bn blow to economy

THE economy has been dealt a serious blow with the US government signalling it is to target €2.5 billion of Irish tax revenues in broad economic reforms.

The proposals announced by President Barack Obama are designed to force American companies to bring profits home to be taxed.

A spokesman for Tánaiste Mary Coughlan said she was monitoring the situation as Mr Obama’s tax plans progressed through the Houses of Congress. Mr Obama wants to close loopholes that allow corporations to park profits in foreign countries.