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Ireland needs `greater bailout flexibility`
Date 17/05/2011 13:49  Author webmaster  Hits 970  Language Global
17 MAY 2011

By Arthur Beesley | Irish Times

Taoiseach Enda Kenny has said Ireland needs "greater flexibility" from its European Union partners as it continues to focus on achieving a rate cut on the bailout package.

"What we need is less money and greater flexibility," Mr Kenny said in an interview with RTÉ Radio today.

He said that France's demands that Ireland change its 12.5 per cent corporate tax rate is "beyond their scope".

France is among a number of European countries that have pressed for Ireland to increase its corporate tax rate in return for a cut in the interest rate on the bailout loans.

Mr Kenny also said that Ireland has no intention of defaulting on its debt.

The International Monetary Fund yesterday praised the Government’s efforts to dig Ireland out of the economic crisis and said it was disbursing another $2.24 billion (€1.58 billion) of loans to it after reviewing the country’s performance.

“Ireland is making progress in overcoming the worst economic crisis in recent history,” said the IMF. With the latest disbursement, Ireland will have received about $10.19 billion from the IMF under the joint loan programme with the EU.

Deputy IMF managing director Naoyuki Shinohara said Ireland had made “a strong start” at righting its economy since the programme was put in place late last year. “Resolute policy implementation by the authorities has kept the program on track during a period of political change and an unsettled external environment,” Mr Shinohara said.

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