Leinster House, seat of the Irish
Parliament and a fine Georgian
building: might our Irish
kin save us from EU
Serfdom? Read on.

It does not take membership of the Euro for a nation state to achieve financial prudence – simple self-discipline on the part of its Finance Minister will do that – but getting a public wigging from the EU’s Economics Affairs Commissioner is something which most governments would doubtless avoid, though it is well known that the EU will never take any really painful action against one of the big boys.

Yesterday the Times alerted us to the threat of unelected EU Commissioner Joaquin Almunia to slap Gordon Brown and Alistair Darling on the wrist for the heinous offence of allowing our finances to get out of hand. The Commission said that the Treasury was set to borrow 3.3 per cent of national income (GDP) in the present 2008-09 financial year and the next, which will amount to two consecutive breaches of the the 3% ceiling prescribed under the Maastricht Treaty. The average deficit for all 27 European Union nations this year is, by contrast, set to be only 1.2 per cent of GDP.

France, Italy and Germany have all, at various moments, breached this ‘rule’, the consequence of which was to be the object of a really major telling-off from the EU: “You have been very very very naughty and you must never, ever do that again! And if you do, you will have TWO slaps over the wrist next time!”

The incident reminds us of two things.

The first is that we are, in terms of how we conduct the nation’s finances (and, thanks to the EU Constitutional Treaty of Lisbon, how we henceforth conduct almost any of the business of government), no longer master in our own house. Instead faceless officials, untroubled by the need to seek a democratic mandate, order our comings and goings from the level of the ordinary citizen to the once Great Offices of State. The EU does have real power to enforce such rules by levying huge fines. The problem is that, when it comes to the main players in the EU, the ones that really hire and fire people in the Euro Bureacracy, the rules are ignored with impunity.

The second is that the figures upon which the decision to slap our wrists is based are far more accurate than any of those contained within the “Brownies” which our mendacious Prime Minister projectile-vomits as displacement activity whenever anyone these days suggests he is manifestly not up to his job.

In the present instance McStalin has an accomplice, Alistair “We’re Doomed” Darling who has picked up the habit like a dose of impetigo from his Scots chum. He has been peddling “brownies” furiously since he was appointed, unsuprising since most of that which has emanated from the Treasury these past ten years via the mouth of McStalin has been a bare-faced lie. The current lot of rubbish concerns projections for growth:

In the latest blow to the Chancellor, the European Commission threw its weight behind the attacks of other leading institutions on his upbeat Budget prediction that Britain’s economy would rebound strongly next year after a lacklustre 2008.

Brussels cut its forecast for UK growth this year from 2.2 per cent to 1.7 per cent, although this was still just in line with the bottom of the Treasury forecast of 1.75 to 2.25 per cent.

In the latest challenge, however, to Mr Darling’s claims that the economy will enjoy a resurgence next year, the Commission also cut its forecast for 2009 to 1.6 per cent.

This is sharply lower than its previous November projection of 2.5 per cent growth and far below Mr Darling’s hopes for GDP to expand by 2.25 to 2.75 per cent.

Thus are the whoppers this mendacious pair trot out exposed as the piffle they really are.

Still, the background struggle to impose uniformity across the board goes on, as the Irish may find out. Just at the moment various companies are re-locating their Domicile to Ireland with a view to taking advantage of the very low rates of Corporation Tax there: WPP for one, Shire Pharmaceuticals and UBM for another or two. There will be more unless dunderhead McStalin and his Scots chum decide to ameliroate the tax and regulation nightmare they have created for business in the UK. It won’t have helped trying to loot the Non-Doms as well.

Still, perhaps the EU will come to the rescue. Being an essentially 1950s Socialist construct, this behemoth hates anyone who tries to cut themselves some slack so the nasty and dangerous phrase ‘tax harmonisation’ is beint breathed once more. As with all manifestations of socialism, with the EU everything gets rounded down to the worst position instead of being rounded up to the most advantageous: everyone, under this appalling system, gets to be equally poor. Thus Mick Fealty reports in his Telegraph blog:

The French Finance Minister Ms Christine Lagarde has committed her government to pushing ahead with controversial plans for a common consolidated corporation tax base during its Presidency of the EU later this year.

You can be sure that the ‘consolidated’ rate will not be the tasty 12.5% the Irish currently enjoy and thrive upon. As the Irish economy has done rather well with its Corporation Tax at this rate, the suggestion that the EU might force them to fall into line (and cut their own nose off to spite their face) is going down badly just as the irish EU Constitutional Treaty referendum gets under way – they are having one because the law requires it: were it otherwise it would be otherwise, if you get my meaning!

This in turn, Fealty notes, is helping to fuel the anti-EU vote: ‘Game on‘, he says. Indeed.

If they vote ‘No’, what an irony it would be if Britain’s independent status as a Sovereign Nation State were to be saved by the Irish.

But if they do say ‘No!’, the second referendum to reverse the result will not be far behind, so hold not your breath. Still, it will make life difficult for our liar of a Prime minister, so let us cheer for Ireland and hope that she may live up to the words of the song: “A Nation Once Again!”


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