The Government will continue to battle for a cut in the bailout interest rate, but will defend its low corporate tax rate, Minister of State for Public Service Reform Brian Hayes said.

"Any change in our corporate tax rate, at a time when Ireland needs stability and certainty, would be utterly self destructive," Mr Hayes said today. "We will not be bullied or intimidated."

There has been speculation that a change in the country's 12.5 per cent corporate tax rate would be enough to ensure a lower interest rate on the European Union portion of the bailout fund.

There is an "urgent and compelling need to bridge the yawning gap between spending and revenue" in the public  finances, Mr Hayes.

Bloomberg