VIEW FROM FRANCE:FRANCE HAS praised Ireland for its efforts to get the economy back on track, but warned that it expects progress in talks on a common corporate tax base.
Jean Léonetti, France’s minister for European affairs, said he was impressed by “the scale of the efforts agreed to by the Irish people, and the speed at which the country is getting back on its feet”.
“At European level, we should be inspired by the Irish example of an innovative economy that is open to the world,” he added.
In an interview with The Irish Times, Mr Léonetti said corporate tax did not form part of the deal agreed last week.
France and Germany had circulated proposals to speed up work towards a common tax base, but these were not included in the final agreement. He noted, however, that Ireland had agreed last July to engage constructively in talks on a common base.
“These discussions have begun, and we look forward to them progressing,” he said.
Asked if tax competition within the euro zone would eventually have to end, Mr Léonetti said the European Council had agreed on the principle of “a common economic policy”.
“Of course, it’s not possible to make our economic policies uniform overnight. However, it is necessary to agree on common rules whenever possible,” he said.
“Companies, particularly small and medium-sized enterprises, are the first to suffer from the very great complexity of the different corporate tax systems in Europe. Harmonising the tax base would be a welcome response to this problem.”
France was seen as one of the main beneficiaries of last week’s Brussels talks. It has long pressed for closer economic governance within the euro zone, where its influence is greater, and an intergovernmental deal was a French preference.
Seeking to allay Irish concerns that a greater role for states could result in the sidelining of European institutions that traditionally protect small countries’ interests, Mr Léonetti said arguments over large states trying to impose their will amounted to “a false debate”.
“The question asked last Friday was did we want ‘more Europe’ or ‘less Europe’. Twenty-six of us reaffirmed our desire for a more integrated Europe.”
The intergovernmental system guaranteed the legitimacy of decisions, as they were taken by democratically elected governments, he said, while the European Commission and parliament had seen their own surveillance powers over all 27 EU economies strengthened under the separate so-called “six-pack” measures this week.
French president Nicolas Sarkozy has portrayed Britain’s decision to veto a new EU treaty as a decisive split that marked “the birth of a different Europe” that would converge without London.
Speaking in advance of a meeting with Minister for European Affairs Lucinda Creighton in Paris, Mr Léonetti sought to play down the significance of British prime minister David Cameron’s move. He said it reaffirmed the original stance taken by the British in staying outside the single currency – itself a “slight contradiction since the City [of London] enjoys a clear benefit from its proximity to the euro zone”.
“Let’s not give the British stance more importance than it merits,” he said. “The United Kingdom certainly retains an essential position in Europe. We will have many other occasions where we will agree with them on issues of common interest, as we did over the intervention in Libya.” In the build-up to last week’s summit, Mr Léonetti warned that the euro could “explode” if viable measures were not agreed. Assessing the outcome, he said the euro crisis was never going to be resolved in one summit but that the Brussels accord marked a “decisive step”.
“It puts in place true economic governance, reinforced discipline and efficient solidarity. It was essential that we reached a constructive accord uniting all euro zone members and that was capable of convincing other EU members,” Mr Léonetti said.