France scuppers hopes of cut in bailout interest rate

FRANCE has scuppered hopes of an immediate cut in bailout interest rates after the row over Irish corporation tax levels re-ignited.

Europe Minister Lucinda Creighton admitted it was “unlikely” Ireland would get the expected 1% cut — which would have saved taxpayers €450 million a year — at next week’s meeting of EU finance ministers in Germany.

The news emerged as Greece came to a standstill following a national strike against new austerity measures imposed by the government as it grapples with a mounting debt crisis and increased pressure regarding its EU/IMF bailout.