It seems that France and Germany have not given up in their “hope” of having a common corporate and financial transaction taxes for eurozone countries. They have sent a letter to the European Council President, Herman Van Rompuy, just 2 days before the European Union summit that will set the future common policies for the UE.
The Merkozy tandem is calling for “strengthening growth through competitiveness and convergence of the economic policies of at least the 17 eurozone member states….and to establish “a new common legal framework fully compatible with the internal market to allow for faster progress in specific areas.”
What does this mean? Basically, they are calling for higher taxes in countries such as Luxembourg, the Netherlands and Ireland. Their intention is that these countries are not attractive anymore to establish the headquarters of thousands of companies by the harmonization of the corporation tax base and introduction of a financial transaction tax, policies that “will support growth and a better use of European funds within the eurozone”. The UK, although not in the Euro zone, is one of the most prominent members of the European Union and probably it won’t support this request.
So… next Friday we will have a “nice show”. Maybe we could even be lucky… Maybe the European Leviathan will be “killed” or seriously injured. We’ll see.