Eurozone powers propose common corporate tax rate

France and Germany are making a joint call for common corporate and financial transaction tax rates within the Eurozone.

The Taoiseach Enda Kenny is likely to oppose the measure at the EU leaders' summit in Brussels.

The proposal has come in a letter from Angela Merkel and Nicholas Sarkozy to the President of the European Council, Herman Van Rompuy, on the eve of the EU leaders summit.

Both countries are already seeking changes to EU treaties to enforce tighter financial discipline.

This evening a senior German Government source maintained that some EU states have not yet understood the gravity of the problems.