BERLIN (MNI) – The Irish government is still against lowering
corporate tax rates, Finance Minister Brian Lenihan told the German
daily Bild in an interview published Tuesday.

Asked if Ireland would give in to pressure from its EU peers,
Lenihan replied: “No, there exists no direct or indirect pressure
regarding our corporate tax rates.”

The minister noted that the majority of foreign direct investment
comes from states outside of the European Union. “We’re competing for
these investments not with other EU states but with the Far East,” he
asserted.

Lenihan also stressed that Ireland is not bankrupt. “We have E22
billion in reserves and a pension fund with E25 billion,” he explained.
“Moreover, Ireland is not in a recession.”

Ireland’s call for financial aid was to make sure that the country
had access to further funds in an emergency case, the minister reasoned.
“It could very well be that these means will not be exhausted fully.”

Lenihan said he was confident that Ireland would be able to pay
back all of the loans. The trade balance will post a small surplus in
2011, he predicted. That means “that the Irish economy as a whole will
pay back its international debt,” he said.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

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