America’s Ambassador to Ireland has warned the Dublin government against any increase in the corporation tax rate as it may force US companies out of Ireland.

Holland’s Minister for Finance has backed Ireland’s refusal to increase corporation tax in the wake of growing pressure from its EU and IMF bail-out bosses.

The Germans have told Irish Finance Minister Michael Noonan to forget about an interest rate reduction on the EU bail-out unless he increases corporation tax levels.

Read more: Bitter row over Irish corporate tax rate between Irish leader Enda Kenny and France’s Sarkozy

Irish Prime Minister Enda Kenny and French President Nicolas Sarkozy clashed Friday night over Ireland’s corporation tax at the newly-elected Taoiseach’s first EU summit, according to the Irish Independent.

Google has strongly warned against any corporate rate tax increase, saying that a move to increase business costs would damage Ireland’s competitiveness.

A Wall Street Journal editorial has attacked the European Union for trying to force Ireland to change its corporate tax structure, warning that such a shift will hinder any future economic growth in Ireland.

A group of German MEPs has been trying to force the European Union into making Ireland increase its corporation tax rate in return for a bailout by the EU.