Reilly: Corporation tax sacrosanct, Spanish bailout or not

Health Minister Dr James Reilly has reiterated the Irish position that our corporation tax rate of 12.5% is not up for negotiation.

His comments follow suggestions that a possible Spanish bailout might increase pressure for a common corporate tax rate across the EU.

Eurozone finance ministers are to hold a conference call this afternoon on Spain's expected request for financial aid to prop up its distressed banking sector.

According to the IMF, Spanish banks need about €40bn in new capital.

Spain's Prime Minister Mariano Rajoy has said he will wait for the results of IMF stress tests before a decision is made.

Speaking today Minister Reilly said the Government is very clear as far as the corporate tax rate is concerned.

"Our corporate tax rate is sacrosanct," he said.

"It's not changing.

"I'll stand over that statement and I know the Taoiseach and the Govenrment does… it's not up for negotiation."

The ministers dismissed as "speculation" any suggestions otherwise, saying "speculation is what got a lot of people into trouble over the Celtic (Tiger) years."