France hints that global corporate tax compromise with Ireland is possible

Ireland has so far declined to sign up to the agreement struck by 134 of 139 negotiating countries

Finance Minister Paschal Donohoe meeting with his French counterpart Bruno Le Maire in Dublin last month.

French finance minister Bruno le Maire said he was convinced a compromise could be found with Ireland to get it on board to back an international agreement for a global minimum corporate tax.

Ireland, the European headquarters for many of the world's largest multinationals, has so far declined to sign up to the agreement struck by 134 of 139 negotiating countries, primarily baulking at a proposed minimum rate of at least 15%, higher than its low 12.5% rate.

Finance Minister Paschal Donohoe has repeatedly said Ireland is committed to reaching an agreement on global tax reform. 

However, he has been coy about giving certainty to the sustainability of Ireland’s 12.5% rate.

Meanwhile, inflation is “here to stay” in Ireland, Davy economists have claimed.

CSO figures this week showed a 2.8% rise in the annual rate of inflation in August to a near 10-year high; driven by higher fuel and rental costs.

"While challenges undoubtedly remain across Europe, the ECB’s attempt to reassure markets that it is not ‘tapering’ may calm volatility,” said chief economist Conall MacCoille.

“However, it will do little to ease the upward pricing pressures, driven by loose monetary policy combined with a meaningful ‘reopening’ rebound, that are becoming clear in the latest data. Inflation is here to stay in Ireland,” he said.

The ECB said yesterday that it will trim emergency bond purchases over the coming quarter, but denied it was tapering emergency support for the eurozone economy.

Elsewhere, the UK economy barely grew in July, suggesting the country’s recovery from the coronavirus recession is rapidly levelling off as consumer spending weakens and supply disruptions hamper production.