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Macron in Ireland to discuss Brexit and international taxation

The French President marks his return to the European scene on Thursday in a one-day visit to Ireland, one of the four EU countries he has yet to visi

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The French President marks his return to the European scene on Thursday in a one-day visit to Ireland, one of the four EU countries he has yet to visit as part of his tour of the bloc. While France and Ireland have much in common, the thorny issue of international taxation is set to loom large.

This is Emmanuel Macron’s first official visit to Ireland and fulfils part of his election pledge to visit all 27 EU member states during his term in office.

The president is travelling with a high-level delegation, including the ministers of finance, foreign affairs and European affairs.

During the one-day tour of Dublin he will meet his Irish counterpart Michael D Higgens and the Taoiseach (Prime Minister) Michael Martin.

There is much to discuss: Brexit and the future of the EU, Covid-19, international taxation, how to handle the Afghanistan refugee crisis as the EU tries to reach a coordinated approach.

Macron will also talk to entrepreneurs, students and intellectuals during visits to Trinity College and the Guinness Enterprise Centre.

Macron and Martin are to host a joint press conference later today.

Brexit
France and Ireland have common ground on the issue of Brexit, having stood up to British Prime Minister Boris Johnson over his desire to renegotiate the withdrawal agreement between the UK and the EU.

London wants to renegotiate the protocol on Northern Ireland which would see the introduction of controls on goods between Ulster and Britain. It has obtained an extension until 1 October.

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While the Elysée says it is willing to discuss the pragmatic implementation of all the provisions, renegotiating the text is out of the question.

Ireland defends the protocol and is likely to appreciate France’s firm stance on the matter.

Taxation
The issue of international taxation is set to be less consensual.

Ireland is one of three EU countries to have rejected the proposal to create a global minimum corporate tax rate of 15 percent as part of the international tax reform negotiated by the Organisation for Economic Co-operation and Development (OECD).

The proposal would redistribute tax revenues from very large corporations to countries where they have their sales.

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Validated by the G20 in July, 132 member countries out of the 139 making up the OECD have signed up. But Ireland, Estonia and Hungary have not.

France has been at the forefront of pushing for a minimum tax rate, but Ireland has expressed reservations. Its own 12.5 percent rate allows it to host headquarters of digital giants like Google, Apple and FaceBook.

Signs of hope
France believes there may be a mood for change.
According to the presidency the head of the Irish government and his finance minister Paschal Donohoe have given “signals” that they are willing to work and look at the details of this agreement.

“Ireland has not entirely closed the door,” an Elysée official told journalists ahead of today’s meeting.

Getting Ireland on board is crucial since the global tax rate requires unanimity within the bloc if it is to become law.

In January 2022, France takes over the six-month rotating presidency of the EU Council, placing Macron in a “president of Europe” role.

Brought into office on a pro-European platform, Macron is expected to run for re-election in April 2022. Polls suggest he will likely face off hard-right leader Marine Le Pen in the second round.

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