The German government believes Britain should be part of a Europe-wide tax on financial transactions, the proceeds of which could help prop up the single currency.
That\’s the first silliness: there will be no extra revenue.
The second is that the direct revenue, before the losses from other taxes as the economy shrinks, would be, as the EU itself says, perhaps €50 billion a year. That simply isn\’t enough to solve the €4 or €5 trillion sovereign debt problem being faced.
The third is that there\’s no way in which such a tax could be implemented in time to have any effect at all.
“I can understand that the British don’t want that [the financial transaction tax] when they generate almost 30 per cent of their gross domestic product from financial-market business in the City
of London,” said Volker Kauder, the parliamentary leader of the Christian Democratic Union, said in a speech to the party congress in Leipzig.
And that\’s just being a stupid bloody Kraut. It\’s more like 4%.
And if it were 30% then of course we\’d fight against the tax all the harder, wouldn\’t we? 30% of the economy is larger than the entirety of manufacturing as a share of Germany\’s economy.