CORPORATION TAX:FRENCH AND German officials have contradicted the Government assertion that Ireland's 12.5 per cent corporation tax is off the agenda in any negotiations over financial aid for Ireland.
Speaking ahead of last night’s Government press conference at which the Taoiseach said the issue of corporation tax does not arise, a a spokesman for Jean-Claude Junker, the chairman of the Euro Group, said that the matter was not off the the agenda as a number of euro zone states wanted to discuss it.
French officials were also briefing yesterday that it should be up for discussion despite comments made by French president Nicolas Sarkozy at this weekend’s Lisbon summit.
Mr Sarkozy said he anticipated Ireland would raise its corporate tax rate, but that this would not be made a condition for any bailout.
However, Le Figaroquoted a French official as saying: "Several European states, including France, pointed out that if Ireland has to be told to raise its revenues, the corporate tax rate leaves room for progress."
A spokeswoman for the Élysée Palace declined last night to elaborate on France’s stance.
Meanwhile, a German government spokesperson denied yesterday that the chancellor Angela Merkel had altered her position on the Irish 12.5 per cent corporate tax, long viewed as too low in Germany and elsewhere.
In Lisbon, Dr Merkel responded to a question on the tax by saying all EU countries were welcome to apply for the rescue shield and that “everything else is up to each individual country”.
A German government spokesperson said that the chancellor was keeping out of the discussion and that “her words speak for themselves”.
Separately, German constitutional lawyers have said they will file an injunction to stop a pay-out of funds to Ireland as soon as Dublin applies to the euro zone rescue fund.
As Dublin prepares for an aid package with the IMF, a 50-strong team of German lawyers and public figures are ready to stop the deal with a demand that the constitutional court in Karlsruhe halt German participation.
Prof Markus Kerber, who has filed a challenge to the temporary rescue measures first used by Greece in May, said: “We will file a preliminary injunction if it comes to assistance for Ireland from the rescue fund, asking that the federal government distance themselves from any payment from the fund.”