FRANCE IS TAKING a hard line with Ireland over the question of corporation tax – which may in turn damage Ireland’s chances of securing a lowered interest rate on its bailout deal, the government believes.

Speaking in Brussels last night, Minister for Enterprise Richard Bruton said that France seemed to be pursuing a “one-item agenda” in relation to Ireland’s corporation tax, the Irish Times reports. Meanwhile, however, Germany’s stance on the matter appears to have softened according to Minister of State for Europe Lucinda Creighton, who said that the tax rate was not a “red line” issue.

The issue of the interest rate being applied to Ireland’s bailout loans appears to be causing increasing concern, with the Public Expenditure and Reform Minister Brendan Howlin publicly acknowledging yesterday that a long-term rescheduling of debt would be “desirable”, Reuters reports.

On the issue of increasing Ireland’s 12.5 per cent corporation tax, Howlin said: “It is unreasonable to piggyback domestic issues”.

He also said that it would be unacceptable for Ireland to receive less favourable terms than other bailed-out countries: “It would be entirely unreasonable if interest rate reductions that are available to others wouldn’t be available to ourselves … We certainly don’t want to be treated and won’t accept treatment less favorable than other euro zone partners.”

Howlin told the news agency that Ireland would like a longer-term commitment from the ECB on the provision of emergency funds to the state’s banks:

“We want a better interest rate and we want affordable long-term liquidity for the banks. We had some comfort from the statement from the ECB after the recapitalization announcement but it is difficult when it is on a medium term basis and that is something we are working on still.”

Read more: European Commission pares back forecasts for Irish economic growth >