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France showing greater understanding - Gilmore

Christine Lagarde - Government wires crossed over possible nomination
Christine Lagarde - Government wires crossed over possible nomination

Tánaiste and Minister for Foreign Affairs Eamon Gilmore says France is showing a greater understanding of Ireland's position on corporation tax and the interest rate on our EU-IMF bailout.

Mr Gilmore was speaking after a 45-minute meeting with the French Foreign Minister, Alain Juppe, in Paris.

He said he told his French counterpart that Ireland had no intention of raising its corporate tax rate in exchange for any reduction in the 5.8% interest rate Ireland pays for the €85bn EU-IMF loan.

Mr Juppe had no comment to make to reporters after the meeting, which took place at the Quay d'Orsay in Paris.

Mr Gilmore also said that Ireland would support the French Finance Minister Christine Lagarde if she were to put her name forward to become the next head of the IMF.

However, Taoiseach Enda Kenny has told the Dáil that the Government has not decided on support for any particular candidate for the position of Head of the IMF.

He said the matter had not been decided or concluded yet.

He was responding to Independent Deputy Shane Ross who asked the Taoiseach if the Government would consider opposing the nomination of Ms Lagarde in light of the French government's position on our corporate tax rate and the interest rate on our EU-IMF loan.

The Taoiseach said if Ms Lagarde was appointed she would not be articulating the policies of the French government.

Deputy Ross acknowledged that Ms Lagarde might change her mind when she changes her job, a comment that invoked much hilarity in the chamber, with Deputy Finian McGrath naming ministers Pat Rabbitte and Richard Bruton.

The Taoiseach quoted Deputy Ross from March 2004 when he commented on a 'cracking set of figures' from Irish Nationwide and that 'Michael Fingleton's figures were spectacular'.

The Taoiseach said Ms Lagarde's views on corporation tax and the interest rate would be discussed in the event of her becoming a nominee for the position of head of the IMF.