Madam, – There need be no problem with the French relating to our corporate tax rate.
We have been informed by Michael Noonan that the effective corporate tax rate in France is between 8 and 9 per cent compared with our rate of 12.5 per cent to which Monsieur Sarkozy objects so strongly.
There are two choices open to the Irish Government. Either we lower our corporate tax rate from 12.5 per cent to the rate currently effective in France, or we veto all business within the euro zone until the French raise their corporate tax rate to 12.5 per cent or more.
– Yours, etc,