Schroder Calls For EU Tax Powers

by Robert Lee, Tax-News.com, London

25 February 2002

German Chancellor Gerhard Schroder has fanned the flames of controversy over the possibility of British entry into the euro by stating in an interview with The Times that taxes should be set at an EU level.

He called for the 'Europeanisation' of all economic and financial policy, and commented that: 'European monetary union has to be complemented by political union - that was always the presumption of Europeans including those who made active politics before us.'

The German Chancellor heaped praise on the Labour Government, stating that in his opinion, Tony Blair and Gordon Brown were the ideal candidates to lead the UK into greater participation in European affairs. He promised that there would be more: 'co-ordination and cooperation - to soothe British feelings - than we had before.'

However, it was to no avail - Schroder's proposals met with short shrift from Chancellor Gordon Brown and the Treasury Department, as predicted.

Speaking last week, a Treasury spokesman reiterated the Government's position on the issue, stating that: 'We believe that tax matters are a matter for individual countries. We made this clear at Nice.'

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