Westcountry MPs split on David Cameron's Euro veto
David Cameron has prepared the ground for a seismic shift in Britain's relationship with Europe after he dramatically vetoed a deal to save the eurozone.
Against fears the UK is to be left isolated, Mr Cameron said he was standing up for Britain by refusing to back European Union treaty changes to create a powerful "fiscal union" making tax and spending decisions.
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As a result, Britain will now stand alone away from 26 of the 27 EU member states – led by France and Germany – pressing ahead with their own treaty to bring in tougher economic sanctions and restore single market credibility and stability. Some commentators feel Britain is now on the path to leaving the EU.
Westcountry reaction varied wildly, with praise heaped on Mr Cameron for not agreeing to measures damaging to the UK, proving Britain has a "proper Prime Minister again".
But former Foreign Office minister and Westcountry MP Ben Bradshaw said: "This leaves Britain completely isolated and impotent to influence future decisions, without bringing a single power back home." After 10 hours of talks at a summit in Brussels, an unapologetic Mr Cameron insisted the UK could not accept the treaty change as the safeguards he demanded were not on offer.
A 27-nation treaty change to bring in a new "fiscal compact" would have diminished Britain's influence in the single market and risked the introduction of punitive taxes and regulations on London's vital financial industry, he argued. Protecting the City of London is seen as vital to the British economy as it dwarfs the financial sectors of all other European cities.
The Prime Minister declared: "I had to pursue very doggedly what was in Britain's interests, which is very difficult in a room where people are pressing you to sign up to things because they say it is in all our interests."
Some 26 countries – the 27 EU member states minus Britain but including others not in the euro – were last night forging ahead with an accord to save the crumbling eurozone. Hungary, the Czech Republic and Sweden initially held back from the new agreement, but were thought to be ready to sign up.
But the deal, which includes automatic fines on countries failing to control spending and European Commission approval of budgets, requires Parliamentary support and referendums across the continent, which could take many months with no guarantee of success.
The British veto was hailed by jubilant Tory eurosceptics, some of whom consider it the first step towards a relationship with Europe only as a common market, or even outright withdrawal.
George Eustice, Conservative MP for Camborne and Redruth, co-founder of a new group of eurosceptic backbenchers, said: "David Cameron has proved that Britain has a proper Prime Minister again who means business and has the confidence to stand up for Britain. Meanwhile, the fate of the euro looks more questionable by the day.
"Both Ireland and Finland have already said they cannot agree to what France and Germany want. A two-tier EU is now a reality and Britain will be in the successful tier."
Pro-European Liberal Democrats were cautious given their coalition with the Tories in Westminster. Deputy Prime Minister Nick Clegg insisted they supported Mr Cameron.
But Sir Graham Watson, South West Lib Dem MEP and president of the European Liberal Democrat and Reform Party, said he hoped Britain's position will be reviewed. "It is regrettable that the UK has chosen not to join this initiative," he added.
Mr Bradshaw, Labour MP for Exeter, said: "We won't be immune if the euro collapses, but will now be blamed.
"What a total abdication of Britain's interests in a vain attempt to keep the loony right of the Tory party happy."
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by Charlespk
Sunday, December 18 2011, 10:05AM
“Reality.
Since the 50% tax rate from April 2010 on earnings above £150,000 a typical banker earning £1 million pays more than £477,000 in income tax and £14,000 in national insurance contributions, taking home just £509,000 in net pay.
Before the financial crisis, the industry paid more than £10bn in corporation tax. Later heavy corporation tax reductions would have been because of the heavy losses experienced.
Hind site is a wonderful thing.”
by globalloon
Wednesday, December 14 2011, 9:39PM
“charles
I pay 20% because that is the rate of income tax.”
by Charlespk
Wednesday, December 14 2011, 1:47PM
“"I pay 20% tax on any profit I make in my business."
Only if you run an open-ended investment company.”
by globalloon
Wednesday, December 14 2011, 1:03AM
“@ charles
I pay 20% tax on any profit I make in my business.
Banks pay 0.088%
The other 26 EU countries had a valid point that this should change, but 'dave' said no.
Now waffle on, any other points this topic are irrelevant.”
by Charlespk
Tuesday, December 13 2011, 9:13PM
“What the German's and French wanted globlloon was more like Pimping. . . They just wanted to tax every deal, not to REGULATE them. . The market has already brought that on them. They are even afraid to lend to each other now, let alone businesses.”
by Charlespk
Tuesday, December 13 2011, 8:52PM
“@globalloon
Not the World quite. . They had regulation until Gordon Brown gave independence to the Bank of England and created the FSA. . An inept tripartite organisation without anyone taking overall responsibility after the Glass-Steagall Act was repealed in America.
People who just blame the 'Banks' per-se are really just making excuses for their own gullibility.
From my Thoughts in 2006
"In my view the whole housing bubble wouldn't exist today if they hadn't played havoc with the Stock Market, by making Banking so profitable. . . . The Money Business has been made the only commercial operation without any risk to the operators holding their 'Stock in Trade'. ; save perhaps Oil and other Energy stocks. And British manufacturing has been almost 'deflated' off the map. . . . . . But I'm not really sure just how much longer this corrupt policy can be sustained. . . It's really no different than Pyramid selling. . Eventually there won't be enough people able to sustain the debt. . Just look at what is happening in the Health Service. . . . A substantial cut in Interest rates will soon be inevitable I believe. . ."
And in 2007/8
"It was Xxxx Xxxxxxx's Messiah, Gordon Brown who turned the whole principle of financial probity on its head by creating an atmosphere where getting 'one up' on another in the property market became the foundation for many people's prosperity, rather than producing something. . . . Property values historically have always eventually followed inflation. . Not the other way round. And property 'Bubbles' historically have always created as many losers as winners. . The Banking problem has only really occurred since they started replacing 'Vaults Full Of Gold' with 'Land Registry Computers' and deceiving everyone as to the 'Real' interest rate they were paying when they gave independence to the Bank of England. . . 'Black Monday' when world stock markets crashed and Norman Lamont was abandoned by the French and Germans to prop up the pound alone; in the days of the ERM; may yet seem like a walk in the park by comparison."
The German's and French have got form globalloon.”
by Doitdreckley
Tuesday, December 13 2011, 8:03PM
“Charles you cast arguments around without facts, cant refute what I say, so there is no other conclusion.”
by globalloon
Tuesday, December 13 2011, 7:54PM
“Charles, that's a good point: City of London holds greater responsibility than almost any other financial centre in the world and as such is in need of regulation more urgently.”
by Charlespk
Tuesday, December 13 2011, 7:31PM
“Sir Graham WHO? . . . Said what??
But you couldn't make him up!! . . Unless of course you were writing a Greek tragedy I suppose. :(”
by Charlespk
Tuesday, December 13 2011, 7:14PM
“@globalloon Tuesday, December 13 2011, 6:10PM
As London is one of biggest Global financial players he would have been criminal not to use the Veto unless special taxes were also going to be placed on German cars and French wine.
This is just about the Germans and French not wanting to face up to their Joint and Several liability to the European Central Bank when it starts having to issue Bonds and printing Euros to bail out the failing European economies. . The Euro has fallen again today against the US Dollar..”