The Taoiseach today rejected his French counterpart's call for greater tax harmonisation among EU countries and defended the State's policy of low corporate taxes.
In a major speech yesterday the French Prime Minister Lionel Jospin indirectly accused Ireland of engaging in "unfair competition" in its efforts to attract foreign investment.
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Mr Ahern said today he was at odds with Mr Jospin's "long-stated" views on harmonisation and he was confident of being able to defend Ireland's tax policies against EU interference.
Mr Jospin said yesterday: "It is not acceptable for certain member-states to practise unfair tax competition in order to attract international investment and offshore headquarters of European groups.
"Ultimately, the corporate tax system as a whole will have to be harmonised".
Mr Ahern said Ireland was not singled out in the speech, adding: "I can't be sure what he was talking about.
"The Government should not be worried about the tax rate. The Government's obligation is to ensure that there is sufficient tax take to make sure that we can supply the money for the services, for health and educational services.
"Other countries have an alternative view of doing it. I think our policies have worked extremely well.
"Our view is that if you generate more activity in the economy then it works for you and you can have lower taxes.
"Lionel Jospin has a different view. His view would be that high taxes fulfil the socialist agenda that he has. But our lower taxes are generating far more revenue."
The brief reference to taxation in the 10-page speech was, Mr Ahern claimed, an indication Mr Jospin was "obviously a man who knows that this one he is not going to win".
PA