Answer to Budget Problems

Austrian Chancellor Wolfgang Schuessel thinks he may have the solution to the EU’s budget problems:

"We need a fundamental budget reform that provides the EU with its own source of cash”

Which translated means the EU needs tax raising powers. Somehow it does sound like a great idea to give such powers to an organisation that has not had its finances sign off for a decade and wastes 40% of its current budget on CAP. Favourite for such a tax would be what?

"I suggest there should be an automatic financing mechanism for part of the EU budget -- for example through taxation of international financial transactions."

Funny that. The City of London is by far the most global of the European financial centres, and we would therefore contribute far more than any other country. Not to mention the damage it would cause. Perhaps someone should brief him on Austria's growing position as the financial centre of Central and Eastern Europe. It might put him off the idea.