FRANCE:FRENCH PRESIDENT Nicolas Sarkozy last night congratulated Enda Kenny on his election as Taoiseach and said he looked forward to working with him on economic challenges facing the European Union.
However, a senior Élysée Palace official signalled to The Irish Times that Paris was opposed to Ireland’s hope of ruling out changes to the corporate tax regime at tomorrow’s summit of euro zone leaders.
Mr Kenny said last week he was not prepared to contemplate increasing the tax rate or to agree with harmonised European rules on the calculation of such taxes.
However, the French official said Paris wanted both options to remain on the table.
“Some countries want us to exclude all discussion on the rates. We think this shouldn’t be excluded,” the source said, while acknowledging “sensitivities” among some member states.
In a letter to the newly appointed Taoiseach last night, Mr Sarkozy wrote: “On the occasion of your appointment as prime minister of Ireland, I extend to you my warmest congratulations and my wishes for every success in your new position.”
The president recalled his meeting with Mr Kenny during his visit to Dublin in July 2008 and said he was “delighted by the prospect of working with you very soon in taking on the challenges of globalisation and the economic and financial crisis that Europe continues to confront”.
Referring to the series of forthcoming EU meetings on economic reform, the first of which will be taking place in Brussels tomorrow, Mr Sarkozy said that member states must “make progress together to restore in Europe strong and balanced growth, [and] a governance and competitiveness that allows it to defend its interests and its position on the international stage”.
Tomorrow’s summit in Brussels presents Mr Kenny with his first major challenge as Taoiseach, with euro zone leaders due to discuss a draft “competitiveness pact” being finalised by EU diplomats.
Tax harmonisation remains one of the most contentious issues up for debate, with France and other states pressing for co-ordination of corporate tax regimes within the euro zone.