ECOFIN COUNCIL/TAXATION : FRANCE AND GERMANY PUSH FOR COORDINATION.

France and Germany plan to spell out, at the Ecofin Council on 21 February, the work they have already carried out to strengthen their bilateral cooperation on corporate taxation. Their goal is not to short-circuit the EU's debate on introducing a common consolidated corporate tax base (CCCTB), but on the contrary to help take it forward by presenting certain technical solutions to the problems involved.

The French and German Finance Ministers, Francois Baroin and Wolfgang Schauble, will present their Green paper on Franco-German cooperation: Areas of convergence on corporate taxation'. Their document was approved, on 6 February, by both Nicolas Sarkozy and Angela Merkel. The paper outlines possible areas of convergence on national and local corporate taxes in France and Germany, related to both the tax base and rates. It is currently being put through a public consultation. Paris would like to be able to propose implementation of certain measures in 2013.

At the Ecofin Council, France and Germany will pursue two aims, according to a diplomatic source. First, they hope to trigger a "process" at EU level and in so doing help advance the debate on the CCCTB. They also intend to suggest certain "technical solutions" to problems that have been raised during discussions by member states.

France attaches special importance to enhancing tax coordination in the EU.

Its determination will be mirrored in the conclusions that the 23 EU states of the euro plus pact' (the 27, less the United Kingdom, Sweden, the Czech Republic and Hungary) will adopt, on 21 February, on the progress of their work. This text, to be submitted to the European Council of 1-2 March, reads as follows: " In addition, work on the structured discussions on the coordination of tax policy issues under the euro plus pact' will be further pursued focusing on areas where more ambitious activities can be envisaged. Particular attention should be paid to how tax policy can support economic policy coordination and contribute to...