- Title: Merkel: Brexit-bound Britain might copy EU's low tax islands
- Date: 19th June 2017
- Summary: HAMBURG, GERMANY (JUNE 19, 2017) (REUTERS) **** WARNING CONTAINS FLASH PHOTOGRAPHY **** VARIOUS EXTERIORS OF VENUE FOR CIVIL20 SUMMIT VARIOUS OF MERKEL ARRIVING VARIOUS OF MERKEL WITH REPRESENTATIVES FROM CIVIL SOCIETY ORGANISATIONS MERKEL AT PANEL DISCUSSION ON STAGE PEOPLE LISTENING (SOUNDBITE) (German) GERMAN CHANCELLOR, ANGELA MERKEL, SAYING: "I don't want to pillory anyone but the island states of Ireland, Malta and Cyprus say: we have a bad geographical location, we're at such a disadvantage, we can only attract companies by having very low taxes. And when, within the context of Brexit, Britain one day decides to step into this tax competition too, then of course that would be a huge challenge for countries." AUDIENCE (SOUNDBITE) (German) GERMAN CHANCELLOR, ANGELA MERKEL, SAYING: "We already have this problem in Europe, where for example we will attempt a joint corporation tax reform via a common tax assessment framework with France, so that at least two countries can be a role model. This could also be a blueprint for a global tax system. It's a difficult task but I believe you can't have this arbitrary difference in taxes if you want globalisation to be fair." PANEL DISCUSSION IN PROGRESS MERKEL WITH REPRESENTATIVES FROM CIVIL SOCIETY ORGANISATIONS
- Embargoed: 3rd July 2017 17:49
- Keywords: G20 C20 civil society organisations summit Angela Merkel Hamburg
- Location: HAMBURG, GERMANY
- City: HAMBURG, GERMANY
- Country: Germany
- Topics: Government/Politics
- Reuters ID: LVA0016LY0CAV
- Aspect Ratio: 16:9
- Story Text: German Chancellor Angela Merkel said on Monday (June 19) that Britain might end up following the example of other islands in the European Union with low tax rates when it quits the bloc.
Speaking to non-governmental organisations in Hamburg before she hosts a G20 summit there next month, Merkel said it was already hard to organise fair tax competition in Europe, and announced plans for a Franco-German corporation tax reform.
The G20 summit is due to take place in Hamburg in early July. On July 13 the governments of Germany and France will meet in Paris for the Franco-German Council of Ministers, where they want to make proposals for closer cooperation in areas such as tax.
In a manifesto document ahead of a June 8 election, Britain's Conservatives - who emerged as the largest party but lost their parliamentary majority - said corporation tax would be cut to 17 percent by 2020.
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