A United States of Europe would serve no purpose other than the self-agrandisment of politicians.
The issue is for the different Euopean tribes to avoid the pitfalls of fiscal union and its necessary prerequisite the ballot box.
Fiscal union does not work. You only have to look at the post-industrial parts of the UK and US to see that. make believe jobs created out of ever increasing and ulitimately unsustainable government spending do not work. Ballot boxes are fine for issues of social importance, abortion, same sex marriage etc. Anything of importance has been long recognised as being dangerous to be decided by the population at large, be that by Plato, John Adams or James Madison. The USA is a country of individuals who chose to leave their home country. Europe is the complete reverse, so pyschologically very different. Better to have national politicians who act as lightning rods for popular discontent and have supra-national bodies of technocrats pulling the strings. Italy has rarely been run so well....
The issue is for the different Euopean tribes to avoid the pitfalls of fiscal union and its necessary prerequisite the ballot box.
Fiscal union does not work. You only have to look at the post-industrial parts of the UK and US to see that. make believe jobs created out of ever increasing and ulitimately unsustainable government spending do not work. Ballot boxes are fine for issues of social importance, abortion, same sex marriage etc. Anything of importance has been long recognised as being dangerous to be decided by the population at large, be that by Plato, John Adams or James Madison. The USA is a country of individuals who chose to leave their home country. Europe is the complete reverse, so pyschologically very different. Better to have national politicians who act as lightning rods for popular discontent and have supra-national bodies of technocrats pulling the strings. Italy has rarely been run so well....
"The path toward joint liability is far more likely to lead to a deep rift within Europe, because turning the eurozone into a transfer and debt union that can prevent the insolvency of any of its members would require more central power than currently exists in the US."
Who cares what they do in the US? Since when has that been the benchmark by which European leaders are expected to measure themselves? If these are unprecedented times then maybe they require unprecedented responses? This article appears to argue that because the US doesn’t have such powers, then the EU shouldn’t have them either. I repeat, who cares what powers the US does or doesn’t have?
The great thing about mainland Europe, is that “closer integration” is practically meaningless on the ground. In the average European home, I doubt if many people care how many additional layers of governance are added to the top ('Intergalactic president’ anyone?) as long as those layers have a legitimate governing role and as long as the people still feel connected to the system at a local level. In most European countries in which I’ve had the privilege to live, this has very much been the case – (the major exception being, regrettably, my homeland; the UK. Westminster already feels remote and leaves the UK regions feeling pretty disconnected from any meaningful power or influence. Additional layers at the top – like Brussels – just add to the feeling of isolation.)
At the other end of the scale, the problems faced by people in their daily lives are increasingly less respectful of national boundaries – environment, business, social responsibility and resources - hence the enthusiasm for European level co-operation.
As I said, the number of layers of governance are not the issue; peoples feeling of ‘connectedness’ at the bottom is what really matters, and in this respect, it doesn’t matter how many regions, languages, identities and cultures co-exist under the umbrella of a single entity, with specific inter-national / inter-regional responsibilities …. as long as it is felt to be doing a useful job!
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So how should any revenue from such a tax be distributed?
I think there is a simple solution. And that is that all the revenue generated by the Eurozone FTT should be handed over to the ECB who would then distribute the money to each country as a function of population. Under such a scheme, a 0.1% universal FTT could generate something like €1 trillion in revenue. Of this, roughly €250 billion would go to Germany (which has 24.6% of the population, €196 billion to France, €187 billion to Italy, €139 billion to Spain, €34 billion to Greece, €33 billion to Belgium, €32 to Portugal, €25 billion to Austria, €16 billion to Slovakia, €6 billion to Slovenia and €4 billion to Estonia. The Netherlands and Luxembourg would get nothing, unless, of course they decide to impose the FTT too
Belgium comes top with a very impressive €380 trillion in transactions, thanks largely to the €333 trillion handled by Euroclear Bank which is based in Belgium. Next comes Germany, with over €364 trillion - again due in large part to a single component - the fact that over a third of all TARGET transactions are handled in Germany.
The big news in the last week is that there are now at least ten EU countries that are in favour of imposing a Financial Transaction Tax. The ten countries are Austria, Belgium, France, Germany, Greece, Italy, Portugal, Slovakia, Slovenia and Spain. And Estonia should be joining soon, as soon as the project has been ratified by the Estonian parliament. It's fantastic news. But there is one thing that I cannot understand. According to the best estimates, the tax will only raise a few tens of billions at most - despite involving most of the big players in the Eurozone. Essentially, only the Netherlands and Luxembourg will be seriously missed.
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