Nicolas Sarkozy and Angela Merkel are edging towards a deal for an EU-wide financial transaction tax
Thursday January 5,2012
By Macer Hall, Political Editor
THE EU plans to hammer Britain with a crippling new tax that will hit pensions, cost jobs and devastate business, it has emerged.
The Franco-German plot will put Britain on course for another punishing clash with Brussels and leave David Cameron facing unrelenting demands for a referendum on our membership of the EU.
French President Nicolas Sarkozy and German Chancellor Angela Merkel were yesterday edging towards a deal for a swingeing EU-wide financial transaction tax, despite fierce opposition from Britain.
French President Nicolas Sarkozy and German Chancellor Angela Merkel at the EU Summit
Sources in the French government said the two will discuss “rapid implementation” of the levy next Monday. Jean Leonetti, French minister for Europe, claimed it will be in force “by the end of the year”.
 David Cameron has to block this proposal. It is not in Britain’s interests; it will be immensely damaging.  |
Euro MP Nigel Farage, leader of the UK Independence Party |
The latest plotting triggered fury at Westminster amid fears the levy could penalise the City of London and lead to up to 500,000 job cuts in the UK.
It will add to the growing support for the Daily Express crusade to get Britain out of the EU. Downing Street also warned that the Prime Minister could be forced to wield Britain’s EU veto for a second time to block the plan.
One senior source close to Mr Cameron said: “Our position hasn’t changed. They cannot impose it on us, and we wouldn’t accept it.”
A refusal by EU leaders to guarantee protection for the City of London ignited a massive row at a Brussels summit on the euro crisis last month, culminating in Mr Cameron vetoing a proposed EU treaty shake-up.
Chancellor Merkel has since been desperately seeking to mend fences with Britain. But the row erupted again yesterday when the French Government confirmed that the issue will be on the agenda for an informal EU summit in Brussels at the end of this month.
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