FRANCE and Germany have agreed that the EU must have uniform taxes. Gordon Brown dissents.
He argues competition in tax rates will stop the creep of tax take. He insists tax remains a national matter. These circles cannot be squared.
The axis
between Paris and Berlin seems able to sideline opponents with ease. So, should we expect uniform income tax, VAT and corporation taxes in the near future? It seems likely we will have a uniform VAT rate of 20 per cent across the Union within two years. Corporation taxes will follow, to the irritation of Ireland that specialises in low company levies. Income tax harmonisation must be far further off but if the French and Germans make a stipulation the Commission has the powers to impose common rates.
Like most large topics these plans have implications for our membership of the euro. If taxation is uniform with the Continent it is through the exchange rate the British economy will adapt ... unless we are by that time a euro-using nation with the pound long gone.
It is all very perplexing and a different landscape from that described when we entered what we thought was a free trade zone thirty years ago.
An unequal fight THE European Union’s employment ministers assemble in Brussels tomorrow with an unhappy conspiracy to make it more difficult to employ people. It sounds kindly. It sounds mild. The directive will make it obligatory to grant identical rights to temporary workers as those of full time long term status.
Equal pay, holiday rights, pension rights and working times sounds splendid but it is a job killer. There are millions of people who depend on their agility and mobility. All agency employees depend on flexibility that will be crushed by the new commands.
The proposal will be adverse across Europe but will be particularly clumsy for Britain where two thirds of the EU’s temporary employees work.
The continental unemployment rates bob along at an intolerable 8 per cent. Britain remains much lower as we enjoy flexibility. Employment ministers all live in cosy cocoons. They have never tried their hands at commercial realities. Is it possible yet to block these "reforms"?
Probably not.
What's in store?MOHAMED AL FAYED has been described as "the greatest living Scotsman" on the odd basis he owns a handsome estate in Ross-shire and likes to wear a kilt. This larger-than-life persona is all part of his positioning to bring Harrods to the market.
A flotation would be glorious fun. For a start we could read the real trading figures which are always confused behind Fayed financial fronts. The trail leads to Bermuda, the Virgin Islands, Luxembourg and back again. There seems to be two factors upon which the sale of the flagship shop depends ... Mr Fayed’s ability to pay his mortgage obligations and, perhaps, his own mortality.
It would help if American tourists, the most welcome visitors through its doors, were not so nervous of travelling. Mr Fayed has great reason to regret the current reticence of Americans. Would Harrods shares be a good buy ? There can be no answer until we saw the figures and knew the price.
It seems likely it would be a jolly adventure and the "Top Scot" needs his retirement fund.
