Ireland's finance minister on Friday said he had proposed increasing VAT by 2 percent in December's budget, confirming a detail given in a government document leaked this week from the German parliament.

The document, obtained by Reuters on Thursday, was produced by the Irish government at the request of the European Commission to give indications of what the government might do in the budget, Michael Noonan told state broadcaster RTE.

To put it quite bluntly, even though the government has made no decision, it is my intention to propose a 2 percent vat increase to take it from 21 to 23 percent, Noonan said.

(Reporting by Conor Humphries)