Newspaper article The Evening Standard (London, England)

Schroder Calls for EU to Be Given Power to Set Universal Tax Rate

Newspaper article The Evening Standard (London, England)

Schroder Calls for EU to Be Given Power to Set Universal Tax Rate

Article excerpt

GERMAN Chancellor Gerhard Schroder set up a fresh clash with Britain today by calling for the European Union to be given the power to set tax rates in its member countries, writes Patrick Hennessy.

The demand, certain to meet the fierce resistance of Gordon Brown, came as Mr Schroder called for monetary union in the EU to be followed by full-scale political union.

He used a British newspaper interview to claim: "What we need to Europeanise is everything to do with economic and financial policy.

"In this area we need much more - let's call it co-ordination and cooperation to soothe British feelings - than we had before. That hangs together with the success of the euro." Asked if he wanted a United States of Europe, Mr Schroder said the "substance" of the union was more important than, "what a child wants to call it".

"European monetary union has to be complemented by a political union - that was always the presumption of Europeans including those of us who made active politics before us. …

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