Well you can tell that panic is setting in over Europe when the Reichschancellor German Chancellor say that the UK is an integral part of the EU, especially after yesterdays daft quotes from the EU Parliament involving tanks and kalashnikov’s over our rebate.
The Markets in the EU you see have gone into the red (as opposed to most of their politicians who are pretty much reds anyway) even the German Commerzbank now needing a bail out and when German banks face problems then rest assured the EU is in serious trouble.
ANGELA Merkel has claimed Britain is integral to the EU despite refusing to join the treaty as stock markets across Europe slid into the red.
The German Chancellor said Britain would remain an important member of the European Union despite not toeing the line.
She told German lawmakers that, while she regrets the decision, “it is beyond doubt for me that Great Britain will in future continue to be an important partner in the European Union.”
“Great Britain is a reliable partner for Europe not just in questions of foreign and security policy; Great Britain is also this partner in many other questions – in competitiveness, in the internal market, for trade, for climate protection.”
The pressure on governments was ratcheted higher today due to sliding markets across Europe.
The euro slid below $1.30 for the first time since the first few days of the year while the FTSE 100 index slipped 36.11 points to 5,454.0. The leading German Dax and French Cac-40 were also 1 per cent down.
The news is a sure sign that the EU summit has failed to quell investor worries over the future of the single currency bloc in light of the raging debt crisis.
Now for all that Cameron’s claim to have vetoed something or other (he didn’t and couldn’t) it now rather looks like the UK possibly by accident might be right to say that entering into negotiations over a new “fiscal compact” was a clear waste of time. A case of 26 “ayes” now looking a bit silly compared to the UK’s “nay” as the markets themselves appear to be totally unmerciful to the EU politicians grand dreams of empire.
The UK is now being looked at (once again) by the EU politicians as a useful cash cow*, after all we’re a net contributor to the EU and if we picked up our marbles and left, we’d leave them with an even bigger problem (something that the anti-UK politicians in the EU parliament do not seem to have grasped) So, I’d rather expect a wave of new attacks on the one area of the UK economy that turns over a tidy profit the “City” and further attempts to regulate its activities (cash grab along with rules to make it more profitable to invest elsewhere in the EU) putting the whole of the EU financial sector on a level footing, to which the correct UK response whilst more diplomatically put was “fuck off”
There’s a reason that the financial markets congregate in London and it’s the flexibility of our system compared to the over regulation in the rest of the EU. Take away the flexibility and the market will go elsewhere. The UK government makes a lot of money from the city via taxation, even the bankers bonuses are taxed and if we lost this lucrative source of income no doubt taxes would go even higher as it does not seem to be within our politicians grasp to understand the laffer curve where lower taxation actually increases income as fewer people will go to great lengths (and expense via accountants) to avoid it. Lower taxation increases sales, as people will spend more and the economy benefits as a result. Something politicians these days (especially the left) do not seem to understand.
Still you know it must be bad for the EU if the Germans think we’re integral to it, which cheery thought has quite made my day as it appears the days of the EU are numbered.
*The real reason Merkel wants us? £9.2 Billion a year, nett.