The German Chancellor is said to be concerned that the Apple tax ruling against Ireland will hurt investment in Europe.
The Irish Independent reports that Angela Merkel is backing the Government over its decision to appeal the €13bn ruling.
The Dáil will be recalled next Wednesday to approve the Cabinets decision, and to set up an independent review of corporate taxes.
Minister for Public Expenditure and Reform, Paschal Donohoe, says it follows ‘a lot of debate and a lot of soul-searching’: “We just tried to weigh up what is the best thing for our country in the long run.
“We have genuinely made an assesment that is standing over the integrity of the revenue commissioner and saying they don’t do deals with anybody.
“Sending out a message to everyone who has jobs in our country and creates jobs in our country that the way we collect tax is not going to change.
“that is why after a lot of debate and discussion among all of us, we have collectively reached a decision.”