So the EU demands more money:
David Cameron is fighting to stop Britain being forced to pay an extra £1.7billion to the European Union due to the success of the British economy.
The Prime Minister was ambushed with a demand from the European Commission for the extra cash because Britain’s economy has performed better than other economies in Europe since 1995.
Well, if contributions are based on GDP then perhaps this should have been expected. But why now?
The payment, described by officials as a “surcharge” follows a change to the way the EU calculates gross national income to include previous hidden service industries, including such prostitution and illegal drugs.
So, what we all thought was just a technical accounting error was in fact a mask for a money grab. Quelle surprise.
However, it’s also a gross error. For the government doesn’t actually have to hand that extra GDP being created in those illegal sectors. Sure, it’s economic activity, and given that it’s consensual adult activity it’s, in one sense, entirely legitimate to count it as economic activity (in the sense that we probably wouldn’t want to include the economic activity connected to, say, child porn or slavery, as part of GDP). However, what government has to hand is not economic activity per se, but that section of economic activity that it can appropriate through the tax system. So when we’re calculating what government should be paying we obviously cannot include those grey and black market activities: the definition of grey being of course that they’re not paying the tax due and thus the government isn’t appropriating a share of the activity.
It’s the wrong GDP measure to be using to calculate contributions.
So, just fuck off mateys. And the horse you rode in on.