The European Commission is to launch a formal investigation into Ireland's corporation tax regime. The commission will investigate whether or not Ireland offered sweetheart deals on corporation tax to certain multinationals operating here.

Fianna Fail spokesperson for finance Michael Mc Grath says our government isn't treating this issue with the seriousness it deserves. McGrath also says the announcement could prove damaging to the Irish economic recovery and will cost jobs, saying it is: “Quite a serious matter for Ireland, because it does pose a threat to our economic recovery and ultimately it could cost jobs because we have about a hundred and fifty thousand people directly employed by multinationals in Ireland, many more people indirectly employed, and any question mark or any cloud hanging over our corporation tax regime poses a threat to the economy.”