The firm’s International Business Report (IBR), which polled 2,500 business in 36 economies, found that overall 53% of European businesses favour the setting of an EU-wide corporate tax rate. The concept was particularly popular with business leaders in Italy (70%), Spain (66%), France (64%) and Greece (62%).

Francesca Lagerberg, global leader for tax services at Grant Thornton, said: ‘In Europe, we have continued to see downward pressure applied to corporate tax rates. This year, Italy reduced its rate from 27.5% to 24%. French president-elect Emmanuel Macron has likewise vowed to cut corporate tax from 33.3% to 25%.

‘But rates in these countries – alongside Germany at nearly 30% - are still among the highest in the EU.

‘Our data tells us that business leaders want a more even playing field in future. Certainly, President Macron is already pushing for more tax harmonisation across EU states.’

In contrast, it is those countries with the lowest corporation tax rates which are least in favour of the move to a common rate. Only 6% of businesses in Ireland, where the corporate tax rate is 12.5% support this, along with 10% in Estonia (corporate tax rate 20%), 28% in the Netherlands (25%) and 30% in Lithuania (15%).

Lagerberg said: ‘Lowering the rate to 15% is one of President Trump’s big economic promises, so it comes as little surprise to learn that, in eurozone countries where rates are low, most businesses do not welcome the prospect of these being raised to meet an EU-wide standard. They want to be able to compete with the world’s largest economy.

‘Business leaders in eurozone countries where corporate tax rates are high, on the other hand, wish for a more symmetrical experience.

‘The exceptions are Germany and Malta, where rates are high, but where the majority of businesses would prefer each country to set its own. This could be because both countries are currently enjoying a competitive advantage: Germany remains the dominant force in Europe, with business optimism soaring high at 72%, and Malta is on track to be the fastest growing economy this year.’

Grant Thornton’s survey also found that 63% of eurozone businesses would like to see further economic integration among EU member states.

Support for EU-wide corporate tax rate versus corporate tax rate as a percentage

*The overall corporate tax rate can range due to local tax trade rates; the figures stated here are the current average or indicative rate for most firms in each country.

Grant Thornton's International Business Reprt - Future of Europe is available here.