Noonan to begin talks on changes to bailout package

FINANCE MINISTER Michael Noonan will begin discussions with the European Commission and the European Central Bank today on a package to ensure sufficient funding to keep Irish banks afloat, cut interest rates on the EU loan and agree concessions on some element of company tax.

Taoiseach Enda Kenny asked for breathing space at Friday night’s turbulent EU summit when France put him under pressure to cut the country’s 12.5% corporation tax rate, explaining that he was only three days in power and needed time.

Other countries, including the Netherlands, were not as adamant as France about reducing the rate itself and said Ireland was being asked to offer some concession in exchange for a 1% cut in the interest rate on the EU’s €44.5 billion portion of the loan.