The corporate tax treaty has become a bone of contention for Ireland. As per reports from the EU summit, the French President, Nicolas Sarkozy, has asked Irish Prime Minister Taoiseach Enda Kenny to raise the corporate tax slab in order to get 1% concession on the interest rate of bailout.

Contrary to few European countries that have secretly supported Ireland’s stand, Germany’s Chancellor, Angela Merkel has openly echoed the proposal made by the French President that Ireland will have to shell out something in order to seek a concession in bailout.

Earlier, Greece was given a concession of 1% on the interest rate in lieu of extension of duration of loan maturity from four years to seven and a half years.

If statistics are to be believed, over 75% MNCs operate in Ireland, resulting in stable economic growth. Many Ireland officials believe that the surmounting pressure to change the corporate structure can prove to be detrimental for the country’s economic growth.

Amid this crisis, Minister for Finance, Michael Noonan is expected to raise the issue of the Common Consolidated Corporate Tax Base (CCCTB) in the meeting with the European Central Bank President, Jean-Claude Trichet on Monday.

Many diplomats believe that it’s too early to decide upon the future of CCCTB as nine states have to agree on the treaty to make it effective.