Kenny 'Misled' Over Merkel Meeting Progress

Fianna Fail's Brian Lenihan has accused the Enda Kenny of having "misled" the Irish people over the outcome of a meeting with the German Chancellor yesterday.

Following a flying visit to Berlin yesterday Fine Gael leader, and favourite for next Taoiseach after the next election, Enda Kenny declared he had taken Ireland's controversial level of corporation tax off the negotiation table.

However, this morning, Brian Lenihan said that Mr Kenny's assertions had "cut little ice" with the German Chancellor and had in fact been dismissed out of hand by the German delegates at the meeting.

"Enda Kenny misled the Irish people about his meeting with Angela Merkel yesterday on one of the most important issues for Ireland’s economic future. Our 12.5% rate of corporation tax is a cornerstone of our economic policy.

"Kenny clearly over sold his diplomatic prowess. In fact, all Enda Kenny got out of his trip to Berlin was a high profile photo op."

The Irish Times reported this morning that the German politicians had reacted with "surprise and anger” over Kenny’s assertions.

After the meeting Mr Kenny claimed he had told Chancellor Merkel Ireland would not be prepared to change it's tax rate as it was an essential component of Ireland’s economy and growth plans for the future.

Meanwhile today, Finance Minister Brian Lenihan is in Brussels for a meeting involving finance ministers from the 27 EU countries.

The discussions are expected to centre on dealing with debt crisis in the Eurozone area and the setting up of a long-term system to deal with the issue post 2013.

Finance Ministers yesterday decided that the new European Stability Mechanism, to be put in place post 2013, will have a fund of €500 billion generated by Europe and further funding added by the International Monetary Fund.

The meeting comes just as controversial statement's emerged from the French Foreign Minister, who said his country wants to change the global financial system to one based on “several international currencies”.

Christine Lagarde said the world had to move on from the “non-monetary system”, it now has, to one “based on several international currencies”.

Speaking ahead of the G20 finance ministers in Paris on Friday and Saturday she added that France wants to see less need for countries, particularly the emerging economies, to accumulate huge foreign reserves.

China’s economy is now second only to that of the US, the country having acquired foreign exchange reserves of more than $2.5tn on the back of its sustained trade surpluses and foreign fund inflows.

France had earlier said that it wanted to see the global financial system rely less on the dollar for a more broad-based arrangement.

(DW)