-Caveat Lector- From http://www.thescotsman.co.uk/index.cfm?id=1735002001
}}}>Begin Sat 29 Dec 2001 Euro-creep: Brussels may set UK taxes Hamish Macdonell Scottish Political Editor THE prospect of British taxes being raised and collected by Brussels moved a step closer yesterday when Germany�s finance minister heralded the introduction of the euro as a major step towards a Europe-wide tax system. In a move which fuelled fears of "euro-creep" - that the single currency would bring greater political and economic integration in its wake - Hans Eichel said he could imagine the development of a centralised European tax system to rival, and supersede, the tax regimes in individual countries. Mr Eichel also claimed the euro would become a "parallel currency" in Britain, mirroring the pound and gradually growing in strength as more people used it. The comments immediately put Mr Eichel at odds with Gordon Brown, the Chancellor, who has repeatedly resisted any moves towards greater tax harmonisation within Europe. But the German finance minister already has the support of Belgium, which proposed similar plans when it held the EU presidency earlier this year, and other finance ministers. With just three days until the euro is introduced in 12 countries, Mr Eichel�s comments infuriated senior government figures in Britain. A Treasury spokesman made it clear yesterday Mr Eichel�s views were not shared by the government. "We are in favour of tax competition, not tax harmonisation," he said. The Tories, however, seized on Mr Eichel�s remarks to claim he had revealed the true agenda behind the introduction of the euro - political and economic union within Europe. In an interview with the German magazine Der Spiegel, Mr Eichel said: "In the longer term, I can imagine a Europe tax. It strengthens spending discipline in Brussels if responsibility for expenditure and income is put tog ether. But if there were a Europe tax, national taxes would have to be lowered commensurably. We cannot pile up administrative layer on top of administrative layer and tax upon tax. Europe would not become a growth and pr osperity project like that." Mr Brown is already known to be sceptical about joining the euro because of the limitations it will place on him, and on the Bank of England, to control the economy. The introduction of the euro is seen by many European politicians as the start of a process that will lead to closer economic and political union with shared taxes and shared national pension funds, a move which would be to Britain�s distinct disadvantage because of the lack of pension provision in large parts of the continent. Peter Duncan, the Conservative MP for Galloway and Upper Nithsdale, said Mr Eichel was saying what many europhile politicians were scared to admit. "This is probably more honesty than we have heard from many of Europe�s p oliticians," he said. "Many like Tony Blair continue to deny its implications for common taxation while advocating the euro at the same time. "The currencies that work long-term eventually end up influencing common taxation. I would expect that Tony Blair is considerably embarrassed by what is being said in Europe." He added he saw no evidence that anybody hunting for bargains in the post-Christmas sales was preparing for the euro to come in as a parallel currency. The pressure on Mr Blair to hold an early referendum on the euro increased yesterday when Digby Jones, director general of the CBI, called on the government to end "delay and prevarication" on the issue. Mr Jones said uncertainty about membership of the euro inevitably had an "impact on investment decisions". He added: "Britain has got to be shown to make its decision and get on with its life." 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