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The Irish Government, in principle has agreed to a EU/IMF bailout but is adamant on not increasing the 12.5% corporation tax.

A bailout package, estimated to be in billions of euros, is expected to be unveiled next week, almost coinciding with announcement of a new Irish austerity plan for the next four years.

The government of Taoseich Brian Cowen is taking a hard line on protecting its very low corporation taxes.  It is "non negotiable" said Deputy Irish Prime Minister Mary Coughlan.

There is considerable pressure from the two big EU powers, France and Germany, on the Irish government to increase it corporation taxes in lieu of the bailout.  Many EU countries argue that its low corporate tax structure gives the country unfair competitive advantage in attracting foreign investments.

The call for increase was also rebuffed by Dick Roach, Ireland's Europe Minister.

"There has been some very unhelpful chatter in the background in the last few days about our corporation profit tax," he told the BBC.

"Where would be the sense of destroying one of the great drivers of growth?"

There is considerable political and public opposition to taking bailout money from the EU/IMF.

The Government has also made it clear that no agreement has been reached yet but Brian Lenihan suggested that while funds would be made available "but not drawn down".

Mr. Lenihan is seeking a special fund for its banks and described that as "very desirable outcome" of the ongoing talks with EU/IMF.