Ireland to oppose EU tax harmonisation

The Tanaiste has rejected calls from Germany to introduce tax harmonisation across the EU.

Speaking at the Institute of Taxation annual dinner last night, Mary Harney said Ireland would never agree to such an idea.

German Chancellor Gerhard Schroeder has repeated his support for the policy in an English newspaper, and both Germany and France are likely to put the issue on the agenda at the first meeting of the Convention on the Future of Europe next Thursday.

They are fearful that without this safeguard, there will be tax-cutting competitions across the EU to attract foreign investment after new member states join from eastern Europe.

Ireland, along with Britain and other member states, opposed the move during the Nice Treaty talks. Each member state has a veto over the move.