French target Irish tax policies

THE row over corporation tax was fuelled by the French Finance Minister Nicolas Sarkozy yesterday at a meeting of EU Finance Ministers when he specifically mentioned Ireland.

He believes France is losing industry to low tax countries like Ireland and some of the new member states. He says they should not get EU development funds if their tax is less than the EU average.

Finance Minister Charlie McCreevy accused Mr Sarkozy of electioneering in his bid to succeed Jacques Chirac as French President.