German Chancellor Angela Merkel told the World Economic Forum in Davos today that isolationism and protectionism were not solutions to the economic challenges facing countries around the world. 

The German Chancellor said that Europe should not complain when other countries - like the US - overhaul their tax systems but instead should respond with reforms of its own.
           
Speaking before US President Donald Trump arrives at the gathering of the global elite in the Swiss Alps later this week, Merkel pointed to efforts by France and Germany to forge a common corporate tax regime.

She said that European countries would need to cope with a more competitive tax environment.

Meanwhile, the chief executive of IDA Ireland has said the recent corporate tax cut in the US will not have a bearing on the IDA's operations in securing US foreign investment. 

Martin Shanahan was speaking at the World Economic Forum in Davis today. 

Mr Shanahan said that Ireland's tax rates still remain "extraordinarily competitive".

"Undoubtedly tax reform make the US more competitive and there may be some marginal calls that will go the US's way, but Ireland remains an extraordinarily competitive proposition," Mr Shanahan stated.

Angela Merkel also told the Davos audience that she was open-minded about what kind of partnership the European Union would develop with Britain after Brexit.

But she noted that there could be no compromise on the EU's core principles in those talks. 

"We want a close partnership with the United Kingdom," she stated.