Cox: Europe cannot force raising of corporation tax

A former President of the European Commission is maintaining the EU cannot move to force Ireland's hand on corporation tax.

There have been murmurings from various quarters in Europe that Ireland's corporation tax rate should be raised as a form of payback for the Commission's support during the country's economic woes.

However, Pat Cox said the guarantees obtained before the second Lisbon Treaty referendum are legally binding.

Mr Cox said: "Now that Ireland finds itself down, but not entirely out, I think that it is important that the powers-that-be in Europe should understand that Europe's word should be its bond."