merrion street

Finance Minister Michael Noonan is in Budapest today for a meeting of ECOFIN. Speaking on RTÉ's Morning Ireland, the Minister said he expected the Portuguese issue to dominate the agenda for the meeting:

I'm expecting the Portuguese issue to dominate the agenda, all other issues will be subserviant to that. I'll take the opportunity to meet with my German and French colleagues in bilateral meetings later in the day to discuss matters of common interest, but as I say Portugal will be the dominant issue this morning.

The Minister also said he would brief the meeting on the Irish bank stress tests and restructuring of the banking system:

... at the Eurozone meeting in the morning [we will discuss] matters of common interest and particularly the promised reduction in the cost of the bailout package, which ran into difficulties when some of the colleagues demanded a quid pro quo in the corporate tax area, so I'll be discussing that. I don't expect anything to be resolved but I want to establish what their exact position is.

Asked whether the Portuguese situation would be beneficial for Ireland in negotiations regarding the interest rate on the EU/IMF bailout, the Minister said:

It's difficult to say but I'll be surprised at the end of the day if Portugal doesn't get the same kind of pricing arrangement as Greece now has. Well, we'll see how it develops but obviously other issues are now on the table and it probably makes it a little easier for Ireland but until I have the conversations it's going to be difficult to say.

On the issue of the Irish corporate tax rate, the Minister said:

It won't be an agenda item here today and it won't be discussed in any formal way, but I will sound out colleagues to see what the position is and if there's any movement but as I say the Portuguese situation will dominate the agenda and that's what's in most people's minds this morning.

However, the Minister said that a "quid pro quo" was still expected of Ireland.