Irish, EU issues haggle over bailout terms

[November 19, 2010]  DUBLIN (AP) -- Irish and European Union officials are haggling over the terms of a bailout loan to rescue the country's shattered banking system.

Officials from the EU, the European Central Bank and the International Monetary Fund are in Dublin to look over Ireland's books and see how bad the situation really is.

Ireland is resisting any suggestion it will have to give up its low corporate tax in return for billions in international bailout loans. The rate is 12.5 percent, far lower than in other European countries and key attraction for business.

Ireland's banks are hurting because they made reckless loans to real estate developers. The government has taken responsibility for bank's debts, and that is threatening to sink its own finances.

[Associated Press]

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.