Big countries' tax deal to reveal rift in Europe

Any agreement will have to meet the needs of small and large countries, says Donohue

European Union flags fly outside the European Commission headquarters in Brussels, Belgium. Picture: Carl Court/Getty

A global deal on corporate tax looks set to bring to a climax a deep-seated European Union battle, pitting large members Germany, France and Italy against Ireland, Luxembourg and the Netherlands. 

Although the smaller EU partners at the centre of a years-long struggle over their favourable tax regimes, welcomed the Group of Seven deal on June 5. for a minimum corporate rate of at least 15%, some critics predict trouble implementing it.