It is a sign of the pressure being felt at the heart of the eurozone that France and Germany, the main drivers of the European project, have had such a public spat in the last 24 hours. Yet the subject of that spat is a subject that has exercised many an economist as the economic downturn has progressed.

To recap, France has argued that years of moderate wage rises in Germany has raised the competitiveness of the latter country at the expense of its neighbours. Christine Lagarde, the French finance minister, has told the Financial Times that Germany should raise domestic consumption, helping weaker eurozone nations to boost exports and shore up their finances. Germany has responded by arguing that its success is based on strong companies and has suggested that other countries would be better off building their own industrial sectors in the German fashion than crying foul about German success.

Who is right? Well, both. Read more »

   Filed under: Economics, Europe, Financial crisis, Globalisation, Investment, Manufacturing | No Comments »

The ‘Fighting for a Financial Transactions Tax‘ conference in Brussels is now tackling the operational detail of an FTT. All the speakers (see list at the end) are emphasising that FTTs are technically feasible – and more than that, vital. Read more »

   Filed under: Europe, Financial crisis, Tax, Transactions tax | 1 Comment »

European Green leader Philippe Lamberts MEP has spoken today about why Greens across Europe support the Robin Hood Tax. Joining the Europeans for Financial Reform conference on ‘Fighting for a Financial Transactions Tax (FTT) – how and why?‘ he stressed that the crisis wasn’t over, and that Europe’s people needed an FTT, not forgetting the north-south benefits of an FTT. He said an FTT was needed to make the economy work for people rather than the other way round.

Meanwhile International Trade Union Confederation (ITUC) General Secretary Guy Ryder said that Governments around the world were asking “where the hell are we going to get the money from?” $700 billion a year was needed around the OECD to meet the costs of the recession, of climate change and of global poverty. The case for an FTT wasn’t just theoretical it was vital. Read more »

   Filed under: Europe, Financial crisis, Tax, Transactions tax | No Comments »

There’s been a week of activity on the Robin Hood Tax with a European flavour, and more to come next week. First, the European Parliament passed a resolution on implementing financial transactions taxes (FTTs). Second, the German and British trade union movements called on their country’s leaders to back a Europe-wide FTT at the European Summit later this month. And third, next week will see a major European conference on FTTs in Brussels. Read more »

   Filed under: Europe, Transactions tax | No Comments »

The old joke “what’s a Greek urn?” has a new and depressing rejoinder: “a lot less than they did before the speculators arrived”. Throughout Greece, wages, pensions and services that ordinary people rely on are being slashed, and higher sales taxes are hitting their pockets, in an effort to compensate for the greed and speculation of a few ‘Lords of Finance’.

At the ETUC, we’re increasingly concerned that Greece seems to be alone to face a renewed wave of financial market speculation, as heavily leveraged speculators take advantage of Greece’s debt crisis, exacerbating the country’s situation for a heavy profit. The European Council, the European Central Bank and the European Commission are giving an entirely wrong message: The speculators are to be left alone, whilst workers and governments are being pressed to cut wages, social benefits and public services. Read more »

   Filed under: Europe, Recession, Transactions tax | 2 Comments »

The Robin Hood Tax campaign is not picky about who introduces a financial transactions tax first. A domestic tax could be brought in by next month’s Budget. The G20 Finance Ministers could agree a global tax at their next meeting in April. Or the European Union could act first.

This week, that last option became a lot more likely. The new EU Commissioner for Finance, Michel Barnier, advocated an EU initiative and the  European Commission has subsequently urged European Union member states to consider the introduction of taxes levied on financial transactions in order to increase their revenue. Read more »

   Filed under: Europe, Transactions tax | 1 Comment »

A few days ago, the European Union decided to retain sanctions against key supporters of President Mugabe’s regime in Zimbabwe which prevent them travelling to Europe. The TUC has welcomed the decision, and the Zimbabwe Congress of Trade Unions has backed the decision too. ZANU-PF, not surprisingly, didn’t: they claim that the EU sanctions are an attack on Zimbabwe as a whole. But writing in response to a vitriolic attack on them in the Government-backing Sunday Mail, ZCTU General Secretary Wellington Chibebe said:

“The ZCTU is accused of agreeing to the imposition of the so-called sanctions or pretended to be neutral. Our position is very clear on the so-called sanctions – they are measures targeted at specific people numbering about 200 and specific companies or organisations. Obviously 200 people and a few companies are not ‘the whole of Zimbabwe’. This is our reading and you cannot convince us or the people of Zimbabwe otherwise with your cheap politicking. Zimbabwe is made up of close to 14 million people, the majority of whom are allowed to travel abroad subject to immigration laws of host countries. We also understand that the measures were as a result of the perceived or real rampant violation of human rights and acts of corruption by the targeted club of the elite.”

   Filed under: Europe, International development | 1 Comment »

Robert Mugabe’s cronies in Zimbabwe – clinging on to power and abusing as much of it as they still can, are furious that the European Union has maintained its sanctions on the elite of the country. They claim that the EU has sanctions against Zimbabwe in place, but in fact they are targeted on the people who used to run Zimbabwe as a brutal dictatorship. Trade unionists in Zimbabwe have welcomed the decision this week to keep up the pressure on Mugabe’s clique, not least because those still in positions of authority continue – a year into the power sharing agreement – to abuse that power. Read more »

   Filed under: Europe, Human rights, International development | No Comments »

European Trade Union Confederation (ETUC) General Secretary John Monks told Nicholas Sarkozy’s ‘New World, New Capitalism’ conference yesterday that

“we have done better that we did in the 1930s. But …the global economy is very fragile and in many countries problems will get worse before they get better.”

He said that there should be no return to business as usual, that young people needed a European jobs guarantee, and that Governments should not abandon their crisis interventions until growth was well-established. The financial sector still needs major surgery, including a financial transactions tax. His speech is brief, but pretty much says it all.

   Filed under: Europe, Public spending, Recession, Vulnerable workers | Comments Off

The usually rational Howard Davies suggests in today’s FT that EU Commissioners should be chosen the same way major businesses choose their leaders. So, that means no women, an emphasis on management guff rather than results, and ever increasing salaries in the hope that mutual back scratching will result in the winners rewarding the people who picked them. When will the corporate world realise that it’s not much of a role model?

   Filed under: Europe, They Just Don't Get It | Comments Off