Germany warns of EU tax race after Osborne’s 15% plan

On the 4 July 2016 United Kingdom Chancellor of the Exchequer George Osborne pledged to cut corporation tax to encourage businesses to continue investing in the UK following the EU referendum vote in the UK on the 23 June 2016.

German Finance Minister Wolfgang Schäuble warned on the 6 July 2016 of a tax war, with other EU states cutting their corporate tax rates.

Former World Trade Organization chief Pascal Lamy said Mr Osborne had to consider what the EU would think of such a step.

• Primary Source

ESO: Background information: Statement by the Chancellor following the EU referendum http://www.europeansources.info/record/speech-statement-by-the-chancellor-following-the-eu-referendum/

ESO: In Focus: Brexit - The United Kingdom and the European Union http://www.europeansources.info/record/brexit-the-united-kingdom-and-the-european-union/

ESO: Background information: HM Treasury analysis: The immediate economic impact of leaving the EU http://www.europeansources.info/record/hm-treasury-analysis-the-immediate-economic-impact-of-leaving-the-eu/

BBC News, 06.07.16: Schaeuble warns against EU 'race to bottom' over tax http://www.bbc.co.uk/news/business-36727853

BBC News, 04.07.16: Brexit: George Osborne pledges to cut corporation tax http://www.bbc.co.uk/news/business-36699642

The Conversation, 08.07.16: Could a corporation tax rate of 15% work for the UK? https://theconversation.com/could-a-corporation-tax-rate-of-15-work-for-the-uk-62011

Blog: Open Europe, 23.08.16: Could corporate tax rates become an issue in Brexit talks? http://openeurope.org.uk/today/blog/corporate-tax-rates-become-issue-brexit-talks/

The Telegraph, 22.08.16: Cutting corporation tax will make Theresa May's Brexit talks 'more difficult', European leaders warn http://www.telegraph.co.uk/news/2016/08/22/cutting-corporation-tax-will-make-theresa-mays-brexit-talks-more/

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