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The announcement comes amid unprecedented tensions between the
U.S. under President Donald Trump and its long-standing European
allies over Washington's planned introduction of steel tariffs
that Europe fears will distort global trade.
"We have decided, with more emphasis than in the past, to push
on with the 'Common Corporation Tax with France' project,"
Merkel said in her regular weekend video podcast when asked how
Germany's relative competitiveness could be maintained.
"That means when we decide on a joint corporation tax assessment
basis for France and Germany, we will also consider the
realities that are unfolding in America," she added in response
to questions by a business studies student.
At the end of last year, the Trump administration floated a tax
plan that envisaged slashing the corporation tax from 35 percent
- "very high", according to Merkel - to 21 percent, prompting
protests from European finance ministers.
The Europeans fear that international tax competition will
increase because of the U.S. moves. So EU members, especially
Germany and France, see the need for more tax policy cooperation
among themselves to make their markets more competitive.
(Reporting by Thomas Escritt and Gernot Heller; Editing by
Stephen Powell)
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