The tax policy would apply initially to the 17-member eurozone. France has long complained about Ireland's low corporation tax rate of 12.5 percent.

The proposal came in a letter to European Council President Herman Van Rompuy, on the eve of a key EU summit on December 9.

Both countries want changes to the EU treaties to enforce budget discipline.

"We must strengthen growth through competitiveness and convergence of the economic policies of eurozone members at least," said the letter from French President Nicolas Sarkozy and German Chancellor Angela Merkel.

It called for "a new common legal framework fully compatible with the internal market", covering: financial regulation; the labour market; convergence and harmonisation of the corporation tax base and introduction of a financial transaction tax; and policies that support growth and a better use of European funds within the eurozone.

The push for EU tax harmonisation is highly controversial. The UK especially has for years resisted moves towards tax harmonisation in the 27-nation bloc.

UK Prime Minister David Cameron said on December 7 that he would seek safeguards for London's powerful financial sector at the December 9’s summit in Brussels.