Tuesday, 16 November 2010

Making the most of the EU

For a while now, I've been thinking that since our politicians have no intention of leaving the EU, we should consider how we might make the best of a bad situation.

Free movement of people and capital in the EU would make it very easy for the most talented Europeans to congregate in the UK, if we were to create the right incentives.

If we were to turn our island into a giant tax haven, with little or no income tax, corporation tax, and capital gains, wealth generators from across the European Union of Socialist Republics would be quick to relocate. The state-funded parasites and the xeonophobic would stay at home, but the most energetic and ambitious would be set free. If we were to simultaneously reduce handouts, thousands of unassimilated benefit tourists might find that Sweden and the Netherlands look more attractive.

Like John Galt's strikers, we could show the continentals the folly of their approach.

No doubt the Eurocrats would be annoyed, as they were with Ireland:

The Irish government continued to insist that no request had been made for a new aid package, but with EU officials worried about renewed pressure on bond prices and the euro there was strong support in Brussels to "persuade" the minority administration of prime minister Brian Cowen that help was in the best interests of Ireland and the EU.

An increase in corporation tax as a condition of further assistance has added to concerns in Ireland about the high price being demanded for any aid. Ireland's low 12.5pc rate has attracted a stream of investment but has annoyed France and Germany

I don't know how the Irish people will respond to such an ultimatum, but I like to think the British would resent it.

So what are the possible outcomes:
  • The other members of the EU vote to eject us from the union
  • EU pressure for increased taxation in the UK causes the British people to see the light, and demand a referendum
  • The EU member states engage in a 'race to the bottom', competing to reduce the size of the state
All of these sound good to me. We must ask ourselves why our politicians don't pursue this course.

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