German FinMin Schaeuble says the ball is in Ireland’s court if it wants a lower interest rate. They must make a proposal and be willing to move, he says.
Germany and the rest of the EU want Ireland to raise its corporate tax rate to remove one of its main competitive advantages.
Ireland says hands off the tax rate, though has softened its stance of late… A junior minister open the door to a compromise a bit this morning, Reuters reported, though the headline rate of 12.5% would be left untouched.
With the euro pact set to be ratified at the end of this week, pressure is on for an agreement. Ireland’s leverage comes from its ability to force haircuts on senior bondholders of Irish bank debt, who happen to be the largest banks in the EU…
