Sarkozy fires parting shot at low-tax eastern Europe

A plan put forward by French Finance Minister Nicolas Sarkozy to force Member States in eastern Europe to raise company tax rates will be discussed at an informal meeting of European Union Finance Ministers in Scheveningen on 10-11 September 2004. Germany is also concerned about industry and jobs moving from western Europe to eastern Europe to take advantage of lower company tax rates. Mr Sarkozy's other proposal is for the new Member States to raise their overall taxes, arguing that if they can afford to have lower taxes, they should not continue to receive subsidies through EU regional aid programmes.