Jul 2007 19

Protectionism in Europe is on the rise5

Merkel_3 The Wall Street Journal reports today yet another example of how continental politicians hope to use  the EU as a means of enforcing their economically disastrous policies across the whole continent.

Each individual EU country knows that their statist schemes will retard economic growth, and send investors, entrepreneurs and capital to freer countries where markets are allowed to flourish and productive elements are welcome. So to avoid "damaging" competition between EU countries, politicians from countries with uncompetitive regulative and tax system want to force all EU countries down to their standard.

This is why certain EU politicians wanted to enforce harmonised taxes across whole EU, so that more competitive countries like Britain would be lumbered with outrageously high tax rates, and thus reducing our relative attractiveness to investors.  This time it is Germany wishing to enforce their strict controls over foreign ownership of German capital. Merkel knows that intervening in the free flow of capital will send investors away from Germany, so she says it is only "fair" and "responsible" to enforce these policies across the EU.

If such intervention made any sort of economic sense then why only restrict ownership of non-EU groups, why not stop French companies from buying German stocks? Indeed, if restricting ownership made any sense at all why not stop companies from one German region buying companies based in another German region.

Economic laws do not follow artificial man-made borders.  It is thus unsurprising that countries most open to foreign investment are those countries that are reaping the biggest gains from globalisation; seeing higher growth, lower unemployment and better allocation of resources. If this undeniable economic logic does not convince Germany, then they are free to continue to shoot themselves in the foot by introducing populist protectionist measures, however, Germany should certainly not be enforcing its stupidity across the whole EU. Germany should not be able to undermine the foundations on which British prosperity is built.

Ultimately, this is just further evidence of how far apart Britain’s economic outlook is from continental Europe’s, and so further evidence of our need to reconsider elements of our relationship with Europe.

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  • John B. McNamara

    Having lived here in Germany for over thirty years now, it is clear to me that successive German governments have literally poured money into this “European idea” for well over 40 years hitherto to prevent the “idea” snuffing itself out. If the outside world only really new what resentment exists here in Germany among the population with regard to the across-the-board, high-handed, dictatorial attitude of the Berlin/Bonn government where “Europe” is concerned, it would either rejoice at the possibility of an impending revolt within the country or at an economic conflict between Germany and France. Or it might have to brace itself to ward off the consequences of growing “cooperation” between Germany and France to impose their “leadership” upon the continent. One only has to see the still festering opposition to the the ‘euro’ and its effects for the general public (the “DM” symbol has been replaced by “€” but the sums following them have remained the same i.e. prices have more than doubled and wages have stagnated for years now). In a phone-in poll run by the largest circulation newspaper in Germany, over 96% of the callers rejected the “EU constitution” outright. But the government nevertheless juggernauts the country further into the EU quagmire. An interesting contradiction here is the fact that, for the last 50 years (and especially in the last 30 to 40 years), Germany has become a political vassal to French political and economic aims. To French hegemony. There are now signs however that Germany is beginning to realise how they’ve been fooled by the French and is starting to resent this and stem itself against them (see “airbus”, “EADS” and the recent case of the Romanian nurses).
    I’m keeping my fingers crossed that this will continue…..
    Britain herself should leave the EU and seek more natural alliances elsewhere.
    Yours faithfully
    john B. McNamara

  • James Maskell

    I could never understand the argument the Europhiles used regarding the removal of the word ‘undistorted’ from the free market parts of the treaties. If the fact that the market should be undistorted was already in the treaties in other parts of the treaties, then why bother removing it at all from this one section? Following their argument the articles in the treaties would be in clear contradiction.
    Bizarre, though not entirely suprizing.

  • Marilyn

    The EU has really no constitutional power over member states. The overall goals of countries like Germany and France continue to undermine cross border competition in the EU, with both Germany and France still owning key areas like communications. There is no incentive for them to allow competition to thrive and therefore are complicit in state funded anti competitive practices. The problem is, do we have 10-15 years to wait for all the court cases to be heard and appealed. Their economies are doomed to fail with unemployment rising and pay rises at all lows.

  • Marilyn

    The EU has really no constitutional power over member states. The overall goals of countries like Germany and France continue to undermine cross border competition in the EU, with both Germany and France still owning key areas like communications. There is no incentive for them to allow competition to thrive and therefore are complicit in state funded anti competitive practices. The problem is, do we have 10-15 years to wait for all the court cases to be heard and appealed. Their economies are doomed to fail with unemployment rising and pay rises at all lows.

  • http://www.bbc.co.uk/dna/actionnetwork/G2287 ATFlynn

    Catching up on the past, I come upon this posting by, John B. McNamara who has also made the point that you cannot share Sovereignty. Sovereignty is a Tribal thing.
    Tuesday, August 21st.2007 and Marilyn makes a point that to me describes the loss of National Sovereignty.
    I fully believe that it is within the Legal Powers of the People of Europe, or at least, most of the people of Europe, to Ignore their Elected Government’s and Abandon their systems of Taxation, as being, “Not Fit For Purpose”.
    I do know that it is perfectly Legal for the working TaxPayer of the United Kingdom, to Legally avoid and abandon, Direct Taxation and then enter into another system of “Voluntary” Taxation. Based on the Parish and Town Council, but entirely in the agreement of a Majority of the Local Population.
    This is your Parish. Your Town. Your Bloody money. And you have every right to state What, and How much you are prepared to pay.
    End of Bloody Story.
    Regards, http://www.atflynn.co.uk
    “Norfolks Mutineer.”