Between The Rock and a Hard Place

Probably at the behest of the Spaniards, special tax breaks in Gibraltar are under threat.

The European Commission has called on the UK government to phase out a tax break for offshore companies based in Gibraltar by 2010. The Commission, which said the practice flouted EU competition rules, gave the UK a month to agree or else face possible legal action.

Tax competition, its terrible isn’t it. If EU countries continue down this road we will be able to compete with the rest of the world. Perhaps the EU will even become a dynamic place to do business and the Lisbon Agenda might become a reality. Don’t these stupid free market fundamentalists understand that the Lisbon Agenda was only a good talking point, it was never supposed to actually happen.