The reality that banks are out of control and that you can’t run a common market without some degree of commonality in tax has finally dawned on the EU.
Merkel and Sarkozy moved towards a financial transaction tax on EU banks yesterday, which is a welcome and overdue move that needs replication way beyond the Eurozone if the feral banking economy is to be brought under control.
And there are also clear signs that corporation tax harmonisation is on the agenda – which makes a complete mockery of moves in the UK by Northern Ireland and Scotland to move against that necessary pre-requsitie for a level playing field for business.
Both moves are in the right direction. Of course the devil will be in the detail. But these are obviously correct initiatives at this time.
As much as the move being made towards balanced budgets, to which i will turn next on this blog, is the wrong one.