Bailout interest reduction 'unlikely' at summit

Ireland is unlikely to get any decision on changes to the interest rate of our bailout loan at this week's European summit, it has been claimed.

Draft documents prepared ahead of the summit taking place tomorrow and on Friday, which have been seen by the Reuters news agency, state that its Ireland's steadfast refusal to move on the issue of our 12.5% corporate tax rate will see a decision put off until June.

The summit is also likely to prove inconclusive on the issue of the proposed new multi-billion euro rescue fund.

The delay is likely to disappoint financial markets and comes as the Portuguese government is on the verge of collapse.

It is likely that new austerity measures there will not be passed by Portugal's parliament.

Prime Minister Jose Socrates has said he will resign if the plan is defeated. He said that its rejection would force the debt-laden country to follow Greece and Ireland in seeking an international bailout.