A man walks past newspaper headlines posted on a news stand on O'Connell street, Dublin, November 19, 2010. A financial aid plan to help Ireland cope with its battered banks will be unveiled next week, EU sources said on Friday, but experts warned a rescue may not be enough to prevent contagion to other euro zone members. - Photo by Reuters.
DUBLIN: A major stumbling block in talks between the EU, the IMF and Dublin is Ireland’s 12.5 per cent corporation tax rate, which has helped attract international companies and spark growth.
The rate, one of the lowest in the world and a key reason why companies such as Google and Microsoft do business in Ireland, is under severe pressure as negotiations on a bailout package continue in the Irish capital.
The European Union and the International Monetary Fund want to see it raised in return for any bailout for Ireland and its debt-ridden banks.
