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30 June, 2011 07:57 (GMT +01:00)

London to be punished for EU financial crisis

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The Square Mile and financial services in London will be punished with punitive taxes imposed by Brussels in the form of a new proposal to use a financial transaction taxes (FTT) to fund an extra £93bn needed for EU spending increases.

London Conservative MEP Syed Kamall reacted last night to the proposal to impose a financial transaction tax and said:

"The EU bureaucrats have got their eyes on London's wealth as a target for taxation.  Already the European parliament has voted for a transaction tax on financial services which would strike at the heart of London's financial markets here in the City."

New spending demands in Brussels for 2014-2020 will mean an 11 per cent rise in spending and lead to an extra £1.5 billion a year from the UK taxpayer at a time when the public sector is set to be cut by 20-30 per cent.

Syed Kamall MEP for London went onto say that “We will fight EU taxes all the way, both on grounds of principle and because we cannot afford them."

The European Commission's proposed "multi-annual financial framework" will mean expenditure in the European Union will reach to £872.5bn over seven years, an increase of £41.3bn, or 5pc, on budgets for 2007 to 2013.

Downing Street in a report in The Financial Times today said “the government’s position is not to leave the EU."

The Daily Telegraph is reporting that the Prime Minister David Cameron has "vowed to fight for an EU spending freeze and will threaten to wield a British veto to reject the challenge to national sovereignty in giving Brussels tax-raising powers to legislate new levies to fund itself."

"The EU has to take the same tough measures as national Governments are taking across Europe to tackle public deficits," said a Downing St spokesman. "Britain will also oppose new EU taxes which will introduce additional burdens for business and damage EU competitiveness."

photo credit: London Daily News  Syed Kamall MEP for London


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