EU official says talks on aid to Ireland to complete by end of November

The current talks between the European Union (EU) and the Irish government are expected to complete by the end of November, a top EU official said on Monday.

European Commissioner for Economic and Monetary Affairs Olli Rehn told a conference in Brussels that the technical talks of the joint mission of the EU, the International Monetary Fund (IMF) and the European Central Bank (ECB) are well under way and are expected to complete by the end of November.

Rehn said that the aid package to Ireland will be based on "strong conditionality," adding that the four-year budget cutting plan and the 2011 budget to be announced by the Irish government soon "form a sound basis."

He also said that Ireland will cease to be a low-tax country but whether to raise the corporate tax is up to the Irish government.

"It is evident that after what has happened during the present decade, Ireland will cease to be a low-tax country and will become a normal tax country in the European context," he said.

"Which kind of specific tax increases is, in the first place, in the hands of the Irish government," Rehn said.

There have been suggestions that Ireland should raise its low corporation tax of 12.5 percent to increase revenue. Some EU countries have reportedly held grievance against Ireland, accusing it of unfair competition.

Irish Prime Minister Brian Cowen formally made a request for financial assistance from the EU and the IMF on Sunday, saying the aid will be used to to put the Irish banking system back "on its own two feet," and to address the budget deficit.
(Source:xinhua)