US fears about how low-tax incentives by Ireland can draw US businesses to domicile their operations in the European state will be one of the thorny issues to disturb the normally friendly gathering of Irish and US political leaders at today’s St Patrick Day meeting in Washington, media reports said.

Ireland’s premier, Brian Cowen, is meeting US president Barack Obama today before meeting lawmakers in Congress.

The global economic upheaval and Mr Obama’s declared crackdown on so-called tax havens have left Ireland’s low corporate tax rate and light regulation of the financial services industry – long the country’s most potent attractions for US investors – looking under pressure.

Ireland is not generally viewed by US legislators as a tax haven but Mr Obama has promised to end tax breaks for companies that ship jobs overseas, a pledge that could affect rules that allow US companies to avoid paying US tax on overseas profits.

Meanwhile, inadequate regulation of financial services is widely blamed for the excessive leverage that led to the economic meltdown and the US administration wants international co-ordination of tougher rules for banks and other financial institutions.

Besides businesses, Ireland has become an important hub for investment management and as a domicile for funds such as UCITS III products in recent years, rivalling, and in some ways surpassing, financial centres such as London.