France's corporate tax plan sparks strong reply

FRANCE: FRENCH finance minister Christine Lagarde's comments that France will push hard for a common EU corporate tax plan during…

FRANCE:FRENCH finance minister Christine Lagarde's comments that France will push hard for a common EU corporate tax plan during its presidency of the EU later this year have provoked strong reactions from both sides of the debate on the Lisbon treaty.

Chair of the Irish Alliance for Europe, Ruairi Quinn, dismissed Christine Lagarde's calls for the introduction of a common consolidated corporate tax base (CCCTB) throughout the EU as "wishful thinking".

If Ireland votes in favour of the Lisbon treaty, he said, it will copperfasten the State's veto on decisions relating to taxation.

"Our Government is on record saying that they will stop any attempts to set a common corporate tax rate in the European Union and by doing this they will protect our low corporate tax rate, protect Ireland's interests and achievements and defend Ireland's reputation as a place to do business," Mr Quinn added.

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Declan Ganley, chair of anti-Lisbon treaty group Libertas, said Ms Lagarde's comments revealed "the true agenda of the Brussels governing class".

"Why would we vote for a treaty that weakens Ireland's voice at the table at a time when there is a huge army of special interests lining up to try and deprive us of the one economic tool that we still have? We need to fight this proposal, and we need to send Europe a very clear message in relation to it."

Fianna Fail MEP Eoin Ryan said the provisions of the Lisbon treaty have nothing to do with the issue of a common corporate tax base. "Voting against the treaty because there is a working group in Europe looking at the issue of CCCTB does not help Ireland's case in addressing this cause in the slightest," he said.

"Ireland must negotiate issues of national concern to us from a position of strength not weakness and a Yes vote for the treaty strengthens Ireland's negotiating hand into the future."

Joe Costello, Labour Party spokesman on Europe, described Ms Lagarde's remarks as "disappointing and mischievous" and accused France of arrogance.

"The French are well aware of Ireland's implacable opposition to such tax harmonisation," he said.

"The French know full well that there is no way that the corporate tax base of the EU . . . can be changed without their unanimous consent. Each country has a veto.

"They are certainly doing Ireland's campaign for ratification . . . no favours by raising this canard at this particular time."