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Debate: EU closes another tax loophole

Eurotopics.net - Wed, 22/02/2017 - 12:05
The EU finance ministers are continuing their crackdown on tax avoidance, resolving on Tuesday that multinational companies may no longer exploit differences between the tax systems of the EU and third countries. Instead, as of 2020 multinationals will have to pay their taxes in the countries where they earn their profits. Commentators welcome the move, although some fear it may hurt the EU's competitiveness.
Categories: European Union

Debate: Portugal's alternative austerity policy pays off

Eurotopics.net - Wed, 22/02/2017 - 12:05
Remarkable news from Portugal: the new left-wing government that was harshly criticised by several EU partners when it first took over for renouncing the stringent austerity policy has reduced the 2016 budget deficit to 2.1 percent of the country's GDP. It has taught its critics a lesson, Portuguese commentators gleefully observe, but point out that the country still has major problems to deal with.
Categories: European Union

Debate: Le Pen's controversial headscarf refusal

Eurotopics.net - Wed, 22/02/2017 - 12:05
Front National president Marine Le Pen cancelled a meeting with Lebanon's grand mufti on Tuesday after refusing to wear a headscarf. The French presidential candidate said later that she had been surprised to learn that wearing the headscarf was a condition for meeting the Muslim spiritual leader. The mufti's office, by contrast, stated that it had informed Le Pen on all matters of protocol. Was the incident just a clever stunt?
Categories: European Union

Debate: Should Denmark ban prayer rooms?

Eurotopics.net - Wed, 22/02/2017 - 12:05
The Danish parliament is discussing a proposal by the Eurosceptic and xenophobic Danish People's Party (DF) to ban prayer rooms in schools. Several Social Democrats have also spoken out in favour of the ban, which would only affect Muslim prayer rooms. The majority in parliament is not yet sure how to vote. The press warns against ill-considered bans.
Categories: European Union

Debate: How is Trump changing Europe's defence?

Eurotopics.net - Wed, 22/02/2017 - 12:05
The US has upped pressure on European Nato states to increase their defence spending. Vice-President Pence and Secretary of Defense Mattis have demanded that Nato members honour their 2014 commitment to invest two percent of GDP in defence. Some commentators question whether Washington has got its own calculations right.
Categories: European Union

Debate: One month of Trump in the White House

Eurotopics.net - Wed, 22/02/2017 - 12:05
One decree after another, attacks on the media, contradictory behaviour and foreign policy statements and a resignation in his team - that's the tally after Donald Trump's first month as US President. Europe's press tries to assess what these first 30 days say about the US under Trump.
Categories: European Union

Don’t start Brexit talks with a clash on cash

Europe's World - Wed, 22/02/2017 - 10:09

The eyes of the world will soon be on the Brexit negotiations, amid widespread fears that they may end in a ‘train crash’, not least because of a cash clash. Here’s a suggestion for averting that – or at least making it much less likely.

The pressures and constraints affecting both sides are well-known, but aggressive positions across the English Channel have inflamed tempers and risk putting the talks in peril. On the continent, the UK’s espousal of a ‘hard Brexit’ is baffling, because it limits London’s room for manoeuvre. For the British, the idea of their government’s democratic mandate being ‘punished’ by Brussels is intolerable.

Seasoned negotiators say that the best way to approach hard bargaining is to deal first with the easiest elements. Creating an emollient atmosphere is always helpful. Yet the Brexit talks are due to open with tough demands for the UK to pay tens of billions of euros into the European Union’s coffers.

There is a better way. Begin instead with defence and security cooperation. Military outreach and intelligence-gathering are areas where the UK has much to offer, and the EU much to gain.

London’s line has been that Britain’s NATO membership guarantees Europe’s security. But in political terms there’s far more to be won for all concerned by binding the UK into the EU’s burgeoning ‘defence union’.

“Military outreach and intelligence-gathering are areas where the UK has much to offer, and the EU much to gain”

Britain is militarily the strongest country in Western Europe. Although France and Germany are intent on forging themselves into a unified spearhead of EU defence, it will take at least a decade before that happens. Meanwhile, security threats from resurgent Russia and the turmoils of the Middle East are on the rise.

These threats are common to all Europeans, and at a time when the Trump administration has called into question the United States’ support for NATO, the case for underpinning Europe’s own defence capabilities is obvious. It’s an area where Britain can exert leadership while safeguarding its sizeable exports of defence equipment.

But the idea of starting the marathon two-year Brexit process with a win-win topic like defence and counter-terrorism cooperation has gained little traction. For reasons that have more to do with political grandstanding than finding mutually satisfactory solutions, negotiators on both sides prefer to open with the thorny question of the exit bill to be presented to London.

The subject is guaranteed to inflame passions. The EU-27 faces a gaping hole of at least ten per cent in the 2021-27 EU budget, the multiannual financial framework, and are desperate for funds. Britain’s largely Eurosceptic mass media, meanwhile, will howl with rage when it learns what Brexit will cost the UK Exchequer in cold cash. British ministers may even find themselves having to walk out before the talks can get down to business.

“Brexit negotiators on both sides prefer to open with the thorny question of the exit bill to be presented to London”

How large the amount due to the EU will be seems anyone’s guess. Estimates of pension obligations and commitments to various EU projects vary quite wildly, from a low of €40bn up to €60bn. If the UK’s share in EU assets is deducted that could whittle down the final figure a bit, but it will still compare starkly with the €8bn net annual cost to British taxpayers of EU membership.

The irony is that no definitive figure can be reached until the end of the Brexit negotiations, so it seems perverse to place it at the head of the agenda. Nobody can yet say whether the UK will decide to remain part of key EU programmes on research and development or industrial cooperation – something that the worlds of business and science are crying out for.

It’s possible that the die-hards in Theresa May’s government who demand a hard Brexit will win the day, causing a degree of havoc in the UK economy that some analysts put at £100bn in costs and lost growth. But perhaps cooler heads will prevail, with their warnings that by value half of all Britain’s exports go to the EU, and that leaving the single market threatens the UK’s position as the leading recipient of foreign direct investment in Europe.

Much hangs on the mood created during the early days of the Brexit talks. With Article 50 still to be invoked, there has been sabre-rattling and name-calling on both sides, so it’s time to lower the temperature. Pushing the cost-accounting of Brexit to one side and replacing it with security and defence cooperation would be a good way to start.

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IMAGE CREDIT: Ezio Gutzemberg/Bigstock

The post Don’t start Brexit talks with a clash on cash appeared first on Europe’s World.

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