French President Emmanuel Macron says Ireland must lead corporate tax reform

THE French president said it was up to Ireland to ‘lead and decide’ on corporate tax rates, during a visit to Dublin today.

Resident Emmanuel Macron was speaking in government buildings this afternoon and said the pandemic meant there was a need for a “huge change” to the “classic business model” of tax rates.

Ireland was one of the few countries to resist signing the OECD’s global framework, which would mean the corporate tax rate would drop from 12.5% ​​to 15%.

President Macron said the OECD framework in “such contexts” made sense and denied he was pressuring Ireland to raise its tax rate.

“I think the framework makes sense in such contexts. And I want to believe that we can find the right path together in order to deliver a common framework and deliver this minimum tax. I believe that makes sense,” he said.

“I think our fellow citizens can no longer understand that when you are an SME, you pay taxes but when you are a large digital group you do not pay taxes. They want us to change the system,” he said.

“I’m confident, but I don’t put pressure. I work with your Taoiseach.”

“It’s up to you to lead and decide and it’s up to you, it’s not up to France to put pressure.”

Taoiseach Micheál Martin said Ireland had been “multilaterally constructive” in the OECD negotiations.

He said the process is continuing even if there are “reservations” on certain aspects.

It is understood that in an earlier meeting with Finance Minister Paschal Donohoe, his French counterpart and officials were told that Ireland’s 12.5 per cent corporation tax is a long-standing feature of economic policy Irish.

Earlier, Mr Macron was welcomed to Ireland by President Michael D Higgins at Áras an Uachtaráin.

Commenting on the Afghan situation, Mr Macron said: “No one expected such a rapid and brutal situation in Kabul. President Biden confirmed to us during the G7 that he would leave the military airport and stop his operations with Afghanistan.
“I think de facto we’re all put in a position where we can’t protect all the Afghans we wanted to protect.
“Now it is our responsibility to build additional solutions to protect them over the coming weeks and months.”

Mr Macron also said Ireland would always have EU support when it comes to Brexit negotiations.

He warned the UK it must fully commit to all aspects of the trade deal struck last year.

At the same time, the Taoiseach said he hoped there was enough “political will” to resolve outstanding issues between the EU and the UK.

The French president has been one of the most vocal European leaders during the Brexit process and has insisted that the UK must respect both the Northern Ireland Protocol and the trade agreement reached between the two games last year.

Under the protocol, Northern Ireland remains within the customs territory of the UK – but customs checks and controls are applied to goods moving from Britain to Northern Ireland.

Northern Ireland also effectively remains in the EU’s single goods markets.

Mr Macron said the EU will ensure the UK adheres to the Northern Ireland protocol.

He said: “We will ensure that the agreements signed after very long negotiations are respected, in terms of fishing or certain well-known protocols.”

At the end of June, the UK and the EU agreed to a three-month extension of the grace period on chilled meats entering Northern Ireland from Britain.

The protocol has been a source of contention in Northern Ireland – with unionist leaders calling for the deal to be scrapped or renegotiated.

Mr Macron said Ireland would never be disappointed with France or the EU over Brexit.

“Since the start of the UK referendum, Europe has been united and united. It will remain united. It is an existential for solidarity and unity in the European Union,” he said.

“We will never let you down.”

“Our common strength is the single market and also our history and also what unites our people and our countries,” he said.

Thursday’s event saw the two political leaders refer to the historical and cultural ties shared between the two nations.

Mr Martin spoke of the influence of the French Revolution on the road to Irish independence, while referring to the literary relations of the two countries.

Mr Martin said France is now Ireland’s closest political neighbor within the European Union.

Speaking from the UK, he said a ‘positive and constructive future partnership is in everyone’s interest, but it will only be achieved if there is a relationship of trust and a willingness to deliver on commitments made’.

“With the right political will, I believe it will be possible to find solutions to some of the outstanding issues under the protocol.”