Irish Prime Minister Enda Kenny said March 25 he was bullish on maintaining Ireland’s low corporate tax rate, the source of the Irish official’s earlier spat with French President Nicolas Sarkozy. Ireland’s 12.5 percent corporate tax rate is the lowest headline rate in the European Union.

“The Gallic spat we had the last time has certainly concluded. We shook hands several times during the course of this meeting,” Kenny said, referring to the dispute with Sarkozy, EUobserver reports.

Kenny sought to persuade the European Central Bank to extend its assistance to Irish banks. In a meeting of EU leaders, Kenny appealed to ECB President Jean-Claude Trichet not to cut short ECB’s support to Irish banks, Reuters reports.

The Irish government wants bank bondholders to assume some of the burden of restructuring the country’s banking sector. Ireland wants to impose losses on banks’ senior unsecured bonds not covered by a state guarantee as part of a new deal with the EU, ECB and International Monetary Fund, according to Reuters.

About the author

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    Ma. Rizza Leonzon

    As a former staff writer, Rizza focused mainly on business coverage, including key donors such as the Asian Development Bank and AusAID.