Surely the EU wanted Ireland to increase not reduce their headline corporate tax rate?(Original post by yawn)
I believe Ireland had the lowest corporation tax at 12.5% prior to Osborne's change.
The EU were trying to make it a condition of their loan to Ireland that they reduce it, as it made it impossible for any other EU country to compete with them. Ireland refused, and Osborne raised the stakes.
We'll have to wait and see if Germany or France follow Osborne and jump on the competitive wagon by reducing the tax to even lower levels. Corporation tax could well end up being removed totally by an EU country.
Find out how.