The Chairperson of the European Parliament's influential Economic and Monetary Affairs Committee has said she is outraged by the conditions imposed on Ireland regarding the interest rate on its EU loans.
British MEP Sharon Bowles said Ireland had the recipe to respond to the economic and banking crisis but is being treated harshly by its EU partners.
She said Ireland had taken 'one for the team' by bailing out banks as demanded by the ECB, adding she could see no reason why lending countries should turn a 3% profit.
'A lower interest rate would mean a faster recovery, which is surely in the interests of the EU and the ECB as well as Ireland.
'Of the three countries in programs, Ireland is performing best in class, so to suggest corporation tax measures in return for an interest rate reduction is simply spiteful.'
Ms Bowles also called for a medium-term financing facility for Irish banks.
'Ireland would be helped if the ECB could give firmer commitment to medium term funding rather than repeated rollovers every 14 days,' she said.
'Such measures would help prevent contagion from uncertainty about Greece.'
Ms Bowles was speaking as the committee concluded a fact-finding mission to Dublin.
Ireland 'not for turning' on corporation tax - Noonan
Meanwhile, Minister for Finance Michael Noonan said today that Ireland would not raise its rate of corporation tax despite pressure from France and Germany.
'We're not for turning on this issue. We're prepared to pay the price,' Mr Noonan told reporters after talks with his French counterpart, Christine Lagarde, on the sidelines of an OECD meeting in Paris.
Asked if he was making headway with France on issue, he said: 'We think when we explain things to reasonable people, they respond... I feel like there's a greater understanding of my position.'
But he declined to make any forecast of when Dublin might receive a reduction in the average 5.9% rate on its euro zone rescue loans, already granted to Greece.
He also dismissed talk of contagion from Greece to Ireland.
'Whatever happens in Greece, I don't believe there'll be a serious contagion effect in Ireland.'
Mr Noonan voiced a fear that the reluctance of euro zone heavyweights like France and Germany to grant Ireland easier terms could strengthen euro scepticism in the country's domestic political arena.
'You can see a movement in public opinion already,' he said. 'While it's not mainstream, it's moving in that direction.'
Mr Noonan reiterated that the country hopes to borrow in sovereign debt markets late next year.
'The plan is at the back end of 2012,' Noonan said, adding that such a move would be 'circumstances permitting' and after what the Government hopes will be successful efforts at borrowing on a secured basis by some of its crisis-hit banks.
