Hard evidence emerged today of plans to take away significant powers from the UK.
The plans are outlined in a letter from Merkel and Sarkozy to Herman von Rumpuy, the European Council President, on the eve of a European summit which, not for the first time, has been called make-or-break for the Euro,
Amongst other demands Merkozy set out a plan for Corporation tax to be harmonised and paid directly to the EC. Also planned for inclusion in the treaty is the Financial Transaction tax, which would decimate London’s Financial Services Industry.
All this has nothing to do with the Euro crisis.
Greece’s vast debt problems were not caused by not collecting enough corporation tax. And do we really believe that somehow the EU will be more effective at taxing Italians than the Italians themselves. The proposed changes are nothing to do with saving the Euro and everything to do with the EU extending its antidemocratic powers.
Cameron must stand firm against any demands for further powers to be repatriated.
This is an undemocratic, anti-capitalist, anti free-market plan by a group of leaders of a failed vanity scheme.
Certainly Euro breakup would be complex and likely to cause short term pain on all countries in including Britain. However, free of debt obligations that can never be repaid, the exiting countries would be free to reform, devalue and grow.
The consequences on Britain if Cameron agrees to the European demands would be long-standing and would push the UK into long term decline.
The UK already has the highest debt to GDP ratio in the EU, when private as well as public sector debt is included. Without the relatively business-friendly environment and freedom to set tax rates the UK would have the worst of both worlds.
Cameron must be clear what he is requesting at this summit. Instead of preparing UK “safeguards” he must push for a wholehearted repatriation of powers to the UK.
If countries in the Euro want to go ahead with this failed scheme then we want nothing to do with it. Instead Cameron should push for a simple trade-agreement and to exit all political institutions.
If Cameron seizes it this will be a turning point for the UK.
Which powers should Cameron repatriate from Europe?
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