BERLIN (Reuters) – Germany France will bring forward plans introduce common corporation tax system in response tax cuts announced by the Trump administration, Chancellor Angela .

The announcement comes amid unprecedented tensions between the . President Donald Trump its - European allies over Washington’s planned introduction of steel tariffs Europe fears will distort global .

“We have decided, more emphasis than in the , on the “Common Corporation Tax France’ project,” in her regular weekend video podcast when asked how Germany’s relative competitiveness be maintained.

means when we decide on joint corporation tax assessment basis for France Germany, we will also consider the realities are unfolding in America,” she added in response questions by studies student.

the end of last year, the Trump administration floated a tax plan that envisaged slashing the corporation tax from 35 percent -“very ”, according to – to 21 percent, prompting protests from European finance ministers.

The Europeans fear that international tax competition will increase because of the . moves. So EU members, especially Germany and France, see the for more tax policy corporation among themselves to make their markets more competitive.

Reporting by Thomas Escritt and Gernot Heller; Editing by Stephen Powell