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UK Chancellor Gordon Brown blasts EU federalism
The Telegraph analyses Brown’s own piece, Flexibility, not federalism, is key to this competitive new world, also in today’s paper. EFL
Gordon Brown has raised the stakes in the battle over a new European constitution by demanding categorical assurances that it will not lead to the harmonisation of taxes and a federal European state. Returning to the political front line after two weeks paternity leave, the Chancellor exposes a growing rift between the Treasury and No 10 over the importance of the proposed constitution for a 25-member European Union.
This is significant as Brown’s regarded as Blair’s most likely successor.
Writing in The Telegraph today Mr Brown calls on EU leaders explicitly to reject "grandiose schemes" for harmonising corporate and other taxes and back Britain’s plans for tax competition. He says the EU must abandon "old flawed assumptions that a single market should lead inexorably to tax harmonisation, fiscal federalism and then a federal state". Mr Brown calls on EU leaders to remove "ambiguities" from the draft constitution that could undermine the role of national governments in economic decision-making.
He wants to avoid having the British foot in the French bucket...
His decision to draw attention to concerns over the implications of the constitution is in sharp contrast to repeated lies assurances from Tony Blair that it will not threaten Britain’s ability to set its own taxes or change fundamentally this country’s constitutional relationship with the EU. The Chancellor’s language, particularly raising the spectre of a slide towards a "federal state", has strong eurosceptic overtones. In his article today, Mr Brown contrasts the "rigidities, inflexibilities and lack of competitiveness" of the rest of Europe with the more flexible and open economies of Britain and the United States. He claims that Britain is leading the European recovery. More countries now agreed that keeping the veto on tax and rejecting federal approaches to fiscal policy "are not only right for Britain but right for Europe too". Mr Brown said continental Europe was failing economically while Britain’s economy was flourishing. While tax harmonisation might be the way forward for a "sheltered trade bloc", it was not the future for the EU member states in a competitive global market. He is concerned that the draft constitution is too loosely worded on whether economic policy should be driven by nation states, the European Commission or the European Parliament. Mr Brown’s call for Europe to copy the US will be supported today by Denis MacShane, the minister for Europe. In a speech in London he will say it is time the EC woke up to the growing economic weakness of Europe. Romano Prodi, the EC president, "should worry less about more powers for Brussels and worry more about more jobs for Europe", according to Mr MacShane.

The Telegraph Editor also notes that:
His duel with the Prime Minister, which reached new heights at the Labour conference in Bournemouth, can only end with the political demise of one or the other. Mr Brown seems to be calculating that Mr Blair’s refusal to concede a referendum on the European constitution could be his electoral Achilles’ heel. If the constitution matters as much as Mr Brown now says it does, why is Mr Blair refusing to give the country a vote on it?
Posted by: Bulldog 2003-11-05
http://www.rantburg.com/poparticle.php?ID=20816