Belfast Telegraph

Republic rejects new French calls for increase

By David Elliot

Calls by the new French President for an increase in the Republic's corporation tax rate have been shot down by politicians across the border.

Francois Hollande's advisors unveiled a plan for tax harmonisation across Europe when the new premier met German Chancellor Angela Merkel last week.

"Ireland will support a growth agenda, but clearly there are issues in there with which we don't agree," said Taoiseach Enda Kenny. "Obviously in the context of changes with the corporation tax rate and localised financial transaction taxes are not in the interests of this country."

The Republic's corporation tax rate of 12.5% is far below that of other European countries such as France where businesses pay upwards of 30% tax.

The previous French president Nicolas Sarkozy and Ms Merkel tried to force the issue on Ireland previously, but the Republic's government refused to budge.