France, Germany eye tax convergence as ministers meet in Paris

When the French and German governments meet on Thursday in a joint cabinet meeting in Paris, the big prize will be any progress harmonizing their tax systems as advances on broader euro zone reform look unlikely.

The two countries are due to launch a 1 billion euro ($1.14 billion) fund to finance digital investments, President Emmanuel Macron said in an interview with regional newspaper L'Ouest France. There are also plans for support research and development nanotechnologies and batteries, he said.

However, real progress on economic integration could be achieved if the two euro zone heavyweights agree on concrete steps for harmonizing the way corporate taxes are assessed.

France and Germany have long pushed for convergence in the way taxes are calculated in the euro zone, but have made little progress even agreeing among each other.