European Commission President Jose Manuel Barroso unveiled proposals for a £47billion-a-year levy
Thursday September 29,2011
By Macer Hall
BRUSSELS bureaucrats were last night accused of putting hundreds of thousands of British jobs in peril after confirming plans for a sweeping European Union-wide financial tax.
European Commission President Jose Manuel Barroso unveiled proposals for a £47billion-a-year levy on transactions between banks and other financial institutions within the EU’s 27 member nations.
Bank share values plunged after the announcement.
Treasury officials said the Government would oppose the plan following fears it would penalise the City of London especially. British opposition is likely to scupper the plan as EU tax proposals must be backed by all 27 EU nations.
Mr Barroso claimed the financial transaction tax would raise a “fair contribution” from Europe’s financial sector in an era of austerity.
But the Confederation of British Industry said the plan was “completely misguided”.
Deputy director-general Neil Bentley described it as “a crude instrument that would increase the cost of capital for businesses, hold back their growth potential and raise minimal revenue in return.”
 The Confederation of British Industry said the plan was “completely misguided”.  |
He added: “It would be particularly damaging to the UK.
Here we go again, the EU will have it's pound of flesh from the UK no matter what!
Now this is a really obvious statement but I'm going say it anyway...
THE ONLY WAY THIS IS EVER GOING TO WORK IS IF IT'S APPLIED GLOBALLY.
The fact that every trader will move away from Europe (The City of London to be more precise) to avoid paying the 'dig the EU out of its black hole tax' seems to have escaped Mr Barroso, or perhaps he's fully aware of the ramifications & is using it to get his 'dues' from the UK.
Mr Barroso, you truly are a world class buffoon, & with all the ammunition you have supplied, I'd say we are looking at an Artillery Barrage response from Nigel Farage. Ah that didn't take long.
+ = 
UKIP Leader Nigel Farage today accused Jose Manuel Barroso, head of the European Commission, as being one of "yesterday's men" during Barroso's annual State of the Union address in Strasbourg.
Farage was responding to a bullish speech from Barroso where the EC Chief called for greater centralisation and came down firmly in favour of the 27-nation European Union having a stronger central government.
Barroso outlined a number of proposals designed to promote greater economic integration across the member states, including eurobonds and a financial transaction tax. The latter would see EU countries paying a levy on every financial transaction that took place.
With London as one of the leading financial capitals of the world, such a tax would have a negative impact on the City of London. When Sweden introduced a similar tax it saw disappointing revenues and many financial companies leaving the country.
Barroso also told MEPs that Greece will stay in the Eurozone despite the ongoing crisis and speculation that the country will default on its debts.
Nigel Farage said: "Barroso's speech acknowledged that the EU is facing its greatest challenge at present and what answer does he provide? Further integration and centralisation. It is this kind of supposed solution that helped create Greece's current crisis in the first place.
"Whilst the people of Greece continue to suffer, the EU is using the crisis to perform a power grab on an immense scale.
"The proposal of a financial transaction tax could fatally undermine the City of London and see a mass exodus of financial firms leaving the city. It would be an utter disaster for this country."
Barroso outlined a number of proposals designed to promote greater economic integration across the member states, including eurobonds and a financial transaction tax. The latter would see EU countries paying a levy on every financial transaction that took place.
With London as one of the leading financial capitals of the world, such a tax would have a negative impact on the City of London. When Sweden introduced a similar tax it saw disappointing revenues and many financial companies leaving the country.
Barroso also told MEPs that Greece will stay in the Eurozone despite the ongoing crisis and speculation that the country will default on its debts.
Nigel Farage said: "Barroso's speech acknowledged that the EU is facing its greatest challenge at present and what answer does he provide? Further integration and centralisation. It is this kind of supposed solution that helped create Greece's current crisis in the first place.
"Whilst the people of Greece continue to suffer, the EU is using the crisis to perform a power grab on an immense scale.
"The proposal of a financial transaction tax could fatally undermine the City of London and see a mass exodus of financial firms leaving the city. It would be an utter disaster for this country."
See Nigel's speech here.
No comments:
Post a Comment