The Prime Minister added: \”In the spirit of this healthy competition with France… If France goes for a financial transactions tax, then the door will be open and we will be able to welcome many French banks to the United Kingdom and we\’ll expand our economy that way.\”
\”If France wants to be so mindbogglingly stupid about it then we\’ll take advantange of having a mark at the table, don\’t you worry.\”
Here\’s what the real problem is though. Are the French actually so mindbogglingly ignorant and stupid as to think that an FTT is a good idea? Or have they something up their sleeve?
It\’s possible that they do think it\’s a good idea: economics/finance has never been something that the Enarques quite get. They tend to see politics and the decisions of technocrats as somehow over ruling the movements of markets. Certainly they believe they should and they might even believe they do.
Or it could be that they know that an FTT is a bad idea, most especially one imposed in only one country inside a Single Market with the free movement of capital, companies and labour. But they\’ve got some ace up their sleeve: perhaps they\’ll use the movement of business resulting from the FTT as an argument for its extension?
Anyone any ideas?