Minister for Finance Michael Noonan has insisted there is no threat to Ireland's 12.5% corporation tax.
Mr Noonan was commenting on proposals put forward by France and Germany yesterday to stabilise the euro.
He said a proposed limit on budget deficits - perhaps enshrined in the Constitution - had merit, but had still to be discussed within the Government.
Mr Noonan said that if France and Germany wanted to harmonise their own company taxes, that was their business.
Speaking on RTÉ's Morning Ireland, the minister said there would be objections from many countries to a financial transaction tax.
He said Ireland would be watching to see whether such a tax would apply to all 27 EU countries, particularly as Dublin's financial services industry was competing with London.
European stock markets have had a mixed reaction o the proposals coming from yesterday's meeting between the German Chancellor and French President.
London's FTSE opened around 0.7% lower, while Frankfurt fell by more than 1% and Paris was 0.5% lower.
However markets have since recovered and are currently trading above their opening value.
Nicolas Sarkozy and Angela Merkel presented proposals yesterday for greater eurozone governance, a financial transaction tax and fiscal harmonisation as ways to stabilise the single currency.
European Commission President José Manuel Barroso and Economic & Monetary Affairs Commissioner Olli Rehn today welcomed yesterday's proposals from Paris.
'They represent an important political contribution by the leaders of the two largest euro area economies to this debate and the ongoing work,' they said in a joint statement.
They said a proposed financial transaction tax would be a 'key instrument' to ensure that the financial sector makes a fairer contribution to public accounts, adding that the Commission intended to make a proposal on this issue soon.
Yesterday, the French President ruled out the suggestion that France and Germany would support heavily indebted nations.
He also stressed that individual governments would have to change their budgets when asked to by Brussels.
Mr Sarkozy said the new rules would not be optional and would have to be obeyed.
US shares ended weaker last night as observers digested plans for a tax on financial transactions.
