European tax harmonisation will make considerable progress within months, according to the French Finance Minister, Mr Dominique Strauss-Kahn.

Speaking at the World Economic Forum's annual meeting, Mr Strauss-Kahn said one of the most important challenges facing European governments was to eliminate tax competition.

"At the end of the first half of 1999, we will have some papers and even some decisions," he said. "We then need to move forward and harmonise if that word does not hurt the Chancellor, Gordon Brown too much."

Mr Brown later confirmed that Britain was in favour of eliminating unfair taxes. However, it was unclear whether Mr Strauss-Kahn had Ireland in his sights. Certainly he forgot about us when he repeatedly said that France both had the highest growth rate in Europe in 1998 at 3 per cent and would again have the highest in 1999.