Taoiseach Enda Kenny has warned the European Union must help member states “who are meeting serious challenges”.
Mr Kenny claimed demands for Ireland to increase its corporation tax rate in return for an interest rate reduction on Ireland's bailout loans is "unfair".
He claimed negotiations are being allowed to drag because of national issues that are blocking both Europe’s progress as an entity and Ireland’s return to economic independence
The Taoiseach was responding during leaders’ questions to Opposition criticism of the Government’s failure to get agreement on reducing its loan interest rate.
Fianna Fáil leader Micheal Martin accused the Government of failing to negotiate anything with the EU. He also said there had been an “abject failure” among EU finance ministers “to fulfil the mandate given them by the European council leaders to deliver lower funding costs to all countries”.
He asked Mr Kenny to formally raise the matter at this month’s meeting of European leaders.
The Taoiseach retorted that the reason they were having the discussion was because of the “lousy legacy” left by the previous government and the deal it negotiated with the IMF-ECB-EU.
Sinn Féin deputy leader Mary Lou McDonald accused the Minister for Finance of performing “another U-turn”. She accused the Government of backing down on its “stated and hyped demand for a reduction in the interest rate in the face of French intransigence”.
Mr Kenny said Europe needs to stand up and “look at where it is headed”.
“The European countries politically need to understand and appreciate as many of them do, that it’s necessary to help countries who are meeting serious challenges such as this country is, on their way to economic independence and prosperity,” he said.
“I think it’s unfair that this is being allowed to drag because of national issues that are blocking Europe’s progress, not just our country’s return to economic independence but blocking Europe’s progress as an entity,” he said.
“We’ve all talked about the single market about the potential of 500 million people, about what can be achieved by the EU. The projections for the next 20 years do not rate Europe and this is one of the reasons why, because Europe itself needs to look at where it is headed.
"It is time for Europe to focus on what it needs to do to help countries who are making a real commitment and genuine effort to get out of the economic difficulties we face," he said. "We are not conceding on our 12.5 per cent corporation tax rate and will continue to push for the interest rate reduction."
Mr Kenny said the policy of pushing for cheaper bailout loans was backed by the OECD, the IMF and European commissioner for economic and monetary affairs Olli Rehn.