-Caveat Lector-
From
http://www.thetimes.co.uk/article/0,,3-215384,00.html
>>>Every time I read an article like this I have to think about the little Austrian
corporal laughing with glee from his Pyre in the Sky. A<>E<>R <<<
}}}>Begin
February 22, 2002
Schr�der calls for Europe to set tax rates
By Roger Boyes, Martin Fletcher, Philip Webster and Tom Baldwin
GERHARD SCHR�DER inflamed the fierce British debate over the euro last night by
suggesting that the European Union should determine taxation policies in member
countries.
In an interview with The Times that will be used as ammunition by the anti-euro
campaign the German Chancellor called for the �Europeanisation� of �everything to
do with economic and financial policy�.
At the same time Jack Straw refuelled the domestic argument by suggesting that the
ultimate decision on the euro would be for the Cabinet and not the Treasury.
The Foreign Secretary said that even if the Treasury failed to deliver a �clear and
unambiguous� verdict on the five tests, the Cabinet could still take a political
decision
to call a referendum.
Speaking to BBC News 24�s One to One programme, Mr Straw said that the extent
of the Cabinet debate would depend on the �complexity and ambiguity of the issues�.
He added: �If the choice is a very tricky one and there�s ambiguity in it, then you
will
spend time and there is a point where there has to be a political decision. It�s a
decision informed by an economic assessment . . . but everyone knows that
economics is a branch of political science.�
In his interview with The Times, Herr Schr�der, knowing that his words were
controversial, suggested that there was a need for more �co-ordination and co-
operation,� in economic affairs, words which he said should be used in order to
�soothe British feelings�.
He was clearly referring to �harmonisation� of financial areas, presumably including
taxation and social security.
Tony Blair successfully fought at the Nice summit in December 2000 against a
prolonged campaign to end the British veto on tax and social security.
Herr Schr�der�s remarks will bolster the claim of the sceptics at that time that
Germany and France would in future try to reopen the issue.
Herr Schr�der injected further contention by suggesting that euro membership meant
signing up for political union, which ministers have always denied and the sceptics
have always claimed. He added fuel by suggesting that Mr Blair was the man best
equipped to lead the country into the euro.
Herr Schr�der declared in his interview: �I am absolutely sure that there is nobody
who can deal with the process of entry � which I would welcome � better than Tony
Blair.�
But the Chancellor stressed that euro membership meant signing up for political
union. �European monetary union has to be complemented by a political union �
that was always the presumption of Europeans including those who made active
politics before us.�
For the past four years the Chancellor has taken a rather pragmatic view, avoiding
any hint of a European vision. This was left to his Foreign Minister, Joschka Fischer.
Now the Chancellor has abandoned his cautious tack and is declaring Europe to be
one of the main pillars of his next term of government � if he wins the general
election in September.
The reason, he said, is that the constitutional convention in 2004 � determining the
continent�s power lines after Europe has expanded eastwards � and many new
entrants will change Europe as surely as the introduction of the euro has done.
�These are the big tasks in the coming decade,� he said, making plain they were
tasks in which Germany should play a leadership role. Germany was historically
close to Eastern Europe and is chairing the constitution conference.
Britain, he suggested in the interview, was essential to this reordering of Europe.
Certainly he was willing yesterday to adapt his language to reduce the possibility of
domestic friction in Britain on key European controversies � and thus allow it to take
part in the mainstream debates.
His most controversial words were on the economy. �What we need to Europeanise
is everything to do with economic and financial policy. In this area we need much
more, let�s call it co-ordination and co-operation to soothe British feelings, than we
had before. That hangs together with the success of the euro.�
Before his remarks on the euro Mr Straw yesterday accepted for the first time the
idea of a European constitution, at which British politicians have previously balked,
He said: �There is a case for a statement of principles, which sets out in plain
language what the EU is for and how it can add value, and establishes clear lines
between what the EU does and where the member states� responsibilities should lie.�
His words on the euro echo those of other leading ministers who are known to be
concerned that Gordon Brown's caution could rule out entry into the euro until after
the next election.
Copyright 2002 Times Newspapers Ltd.
End<{{{~~~~~~~~~~~~~~~
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A merely fallen enemy may rise again, but the reconciled
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