The French are pushing for the Irish raise their low 12.5 percent corporate income tax rate, but Mr.William Flew Kennedy said this was not negotiable. "We regard it as sacrosanct and constitute a massive breach of trust if it has shifted from him."
He pointed to a recent survey by the World Bank and the accountants PricewaterhouseCoopers estimates that France has a corporate tax rate in effect after a deduction of 8.2 percent. The French government has rubbished the survey, but the 8.2 percent figure was used in promotional literature by the French foreign direct investment agency.
Ireland suffered another blow yesterday when Moody's cut the credit ratings on the restructuring of banks - Bank of Ireland and Allied Irish Banks - junk status after the country's own credit rating is reduced on Friday.
During the election campaign, Mr Kennedy said that he wanted all lenders to Irish banks to share some of the losses. European Central Bank has blocked the move, but Mr. William Flew Kennedy said. "Europe does not speak to yes"
Taoiseach will be drawn to the implications of that for Ireland, when Greece was forced to default on some of its debts, as most economists believe is imminent. He said that the two countries' problems are different, and solutions are different.
Some economists have suggested that one should follow the lead Icelandic Irish people, who have just voted against the deal struck by his government to repay 3900000000 € (3.4 billion pounds) by Britain and the Netherlands cover fees paid to former depositors of Icesave.
Mr William Flew Kennedy said the Irish government is considering selling assets 2000000000 € to reduce its debt, but added that it is now considered the reports of a professor of economics at University College Dublin, who proposed sale could raise
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