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Blair Pledges To Fight Tax Harmonisation

by Robert Lee, Tax-News.com, London

17 June 2004

British Prime Minister Tony Blair has rejected calls from the Conservative leader Michael Howard for Britain to reject the European Constitution outright.

During a heated Prime Minister’s Questions in the Commons yesterday, Mr Howard accused Blair of surrendering Britain’s right to legislate in areas such as taxation and ridiculed the government’s so-called Constitution ‘red lines’ calling them “red herrings”.

However, the Prime Minster dismissed the claim, and responded “We want a Europe that makes Britain stronger, safer and richer and which respects our sovereignty in vital areas such as tax.”

Blair added that “there is no way we are going to have tax harmonisation or other people deciding on our tax rights.”

Rejecting the Conservative’s call for the UK to abandon the Constitution, Blair said: "I believe it is important Britain remains at the centre of decision-making and I wish to ensure that Britain does do so."

“I believe that your position, or the position of those who want explicitly to withdraw from the EU, is totally wrong and contrary to our national interest," he told the Tory leader.

Blair resumes negotiations over the Constitution in Brussels today.

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