Tuesday, August 10, 2010

EU = socialists that are out of touch

There is a budget deficit crisis in most EU Member States, which of course is meaning they are no longer particularly keen on funding the European Commission's endless demand for more tax victim money to fund feather-bedding of farmers in western Europe, grand infrastructure projects in eastern Europe, ridiculous projects (such as duplicating GPS and CNN) and the jobs for life in Brussels.

The EU is seeking a 5.9% increase in budgets this year, which is laughable given virtually all EU Member States are cutting their overall budgets, some on a grand scale, to live within their means.

The response from Member States has been to look askance at this, as the EU is acting as if there isn't a recession and isn't a fiscal crisis across Europe. The Eurorats simply want to close their eyes and ears and continue wasting money as usual - bearing in mind that almost all of what the EU spends money on is destructive to economic growth (the only good thing is to police Member States from introducing discriminatory interventionist policies).

So what is proposed? The EU will liberate Member States from this burden, to make them all full of glee that they don't have to worry any more about paying for the EC (the European Commission being the bureauratic arm of the EU).

Instead, the EU will impose a tax on the PEOPLE of the EU. According to the Daily Telegraph, the EC is pushing for the powers to impose pan-European taxes on financial transactions and air travel.

This somehow is meant to be palatable to Member States because it wont be their burden, it will be the EU taxing the public.

You see the EU only thinks of itself and Member States as the legitimate actors here, the long -suffering European taxpayers are merely cogs in the machine of the grand project.

Take this quote:

Janusz Lewandowski, the EU budget commissioner, said: "If the EU had more of its own revenues, then transfers from national budgets could be reduced. I hear from several capitals, including important ones like Berlin, that they would like to reduce their contribution."

Note the euphemism "revenues". Not revenue from selling goods or services to willing buyers, or making investments in commercial businesses that generate dividends or capital gains, no it is revenues taken by force, where the only sliver of accountability will be voting for the European Parliament, where every vote has the fraction of influence of a vote at a national level.

What is astonishing is the bizarre belief that somehow having Member States to reduce their state contributions (but have the people living in the Member States pay new ones), is somehow a great achievement?

The UK Government is thankfully having none of this, with Commercial Secretary, Lord Sassoon (who despite the name doesn't have great hair) saying "The Government is opposed to direct taxes financing the EU budget... The UK believes that taxation is a matter for Member States to determine at a national level and would have a veto over any plans for such taxes". None of the Liberal Democrat wishy washiness about Europe there.

However, it does show how the EC is a funny little world isolated from political and economic reality. It should face budget cuts, which would make Europe far better off as a whole, although the French would object as the biggest beneficiary of the status quo.

The EU's only value today is maintaining open borders and in rules that stop national governments providing assistance to their own businesses or in protecting local businesses, beyond that it is a project of tired old failed Euro-socialists whose own vision of the state has just been demonstrated to be a recipe for stagnation.

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