Ireland will be allowed to retain corporation tax rate

IRELAND will be allowed to retain its 12.5% corporation tax rate, but is under pressure in bailout talks to give fewer tax breaks to foreign multinationals, say EU sources.

Sweden has confirmed it is preparing to offer Ireland a loan of up to €1 billion and the Danish government is also considering offering funds. Britain has already said it will do so too.

However, in the European Parliament the president of the ECB, Jean Claude Trichet, hit out when some Irish and other MEPs accused him of capitulating to speculators over the Irish crisis. He did not name Ireland, but said the crisis was a result of bad fiscal behaviour in a number of countries.