Merkel and Chirac agree on VAT package

French president Jacques Chirac and German chancellor Angela Merkel have agreed on a possible postponement of the French demand for reduced VAT rates on restaurant meals, on the eve of a difficult finance ministers meeting over the issue. \n \nThe French and German leaders met on Monday (23 January) in Versailles, in a bid to co-ordinate positions over a wide range of issues such as the future of Europe and the Iran dossier.

But Mr Chirac and Ms Merkel also saw themselves forced to over...