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Dublin, Ireland, United Kingdom (AHN) – Ireland is defending its low corporate tax rates even in the midst of talks over a European Union-led bailout for its troubled economy.

Ireland’s corporate tax rate of 12.5 percent is much lower than the EU average, however Deputy Prime Minister Mary Coughlan says that rate is not negotiable.

Officials from the EU, the European Central Bank and the IMF are expected to formulate a bailout plan sometime next week.

High-tax nations such as Germany and France want Ireland to increase its corporate tax rate. However, some observers say Ireland’s fiscal problems stem not from low corporate taxes but high spending by the Irish government.

Ireland’s low corporate tax rate has attracted foreign investment. Proponents of keeping the tax low say it would not make sense to hamper the nation’s economic engine.

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