The French president has said that he is continuing to work with the Irish Government over the thorny issue of corporation tax – but it was an issue Ireland needed to lead on.
President Emmanuel Macron was in Dublin for a one-day visit on Thursday, his first trip to Ireland since entering office.
It comes against the backdrop of the Covid-19 pandemic and the crisis in Afghanistan.
Ireland is facing calls from the French government to sign up to global tax reform.
The country is one of only a handful of nations not to agree to a major Organisation for Economic Co-operation and Development (OECD) agreement on tax, which is backed by more than 130 countries worldwide, as well as the EU.
The Government has previously pledged to defend Ireland’s 12.5 per cent corporation tax and is still considering how the tax agreement would be implemented.
France’s finance minister Bruno Le Maire has previously called on Ireland to back changes to global tax rules. On Thursday, he met the Irish Finance Minister Paschal Donohoe.
Mr Macron denied that he was putting pressure on Ireland.
“This is for you to lead. This is not for France to put pressure. But I think the OECD framework works in the context,” Mr Macron said.
“It makes sense in terms of cooperation. It makes sense in terms of the EU.
“I think our citizens no more understand that when you are an SME you pay tax. But when you are a big corporation you don’t pay tax.
“I am confident, but I’m not putting pressure. I’m working with your Taoiseach,” he said.
He said that the Irish economy had achieved “tremendous results” in recent decades and acknowledged that a low corporate tax base had been a crucial part of that success.
“What you have managed to do in past decades is unique,” Mr Macron said.
But he said that things had to change following the Covid-19 pandemic.
“The situation is quite different. The post-Covid world is quite new,” he said.
Taoiseach Micheál Martin, speaking alongside the French president, acknowledged that Ireland had “reservations” about the corporate tax proposals.
“We had a good discussion. Ireland has always been constructive with multi-lateral organisations like the OECD,” Mr Martin said.
He said that the Irish economy has “evolved” but challenges remained.
“There are significant challenges for us in respect of this process. But no doubt, we will be engaging constructively in the process.”
Earlier, Mr Macron has been welcomed to Ireland by President Michael D Higgins at Aras an Uachtarain.
