EU tax threat to British workers

BRITISH workers could have money docked from their pay packets to fund a Brussels-run super state, it has emerged.

Proposals to introduce a special tax for the European Union were discussed for the first time by Europe's finance ministers.

The idea, the brainchild of socialist Euro MPs which has the full backing of Britain's Labour group, is opposed by Chancellor Gordon Brown.

But its appearance on the agenda of yesterday's Ecofin meeting Brussels is an embarrassment for Tony Blair, who has always said he is opposed to giving tax-raising powers to Europe.

If it went ahead it would be the first tax controlled exclusively by Brussels and the first to be levied from the Belgian capital on workers' wage packets across the EU.

Eurosceptics see the plan as a huge step forward in the euorophiles' drive to build a centralised super state.

It is a crucial issue because the tax would raise a huge amount of cash and many sceptics fear it would massively increase the power of Brussels to interfere in the way Britain runs its affairs.

The proposed levy would be used mainly to pay for Europe's £60bn a year running costs.

Tory Europe spokesman Graham Brady said: 'These dangerous plans for a eurotax show how out of touch people in Brussels have become. They also show how determined some countries are to turn the EU into a country called Europe.

'The Government must block them. But while Labour remain signed up to the EU Constitution they will continue to give Brussels more control over our lives.

'They need to listen to the vast majority of the British people, who want to see powers brought back from Brussels to Britain.'

The European Court of Auditors, the Brussels financial watchdog, has refused to give the annual EU accounts the all-clear for the 10th year running.

Brady added: 'The last thing the EU should be entrusted with is more power over our finances.'

Currently the Brussels budget is funded by individual governments, broadly based on the wealth of each member State.

The new levy might not be raised by income tax, but might be an energy or environmental tax. The eurotax is one idea being put forward by socialists to the new European Convention, chaired by former French leader Valery Giscard d'Estaing.

Treasury insiders insisted that Brown will use Britain's veto to block the plan.

It is also deeply unpopular with other key States, they said. While Germany and Italy have given it some support, Britain, Sweden and Holland are strongly opposed. The people of France would not give it much support.

Create a FREE account to continue reading

eros

Registration is a free and easy way to support our journalism.

Join our community where you can: comment on stories; sign up to newsletters; enter competitions and access content on our app.

Your email address

Must be at least 6 characters, include an upper and lower case character and a number

You must be at least 18 years old to create an account

* Required fields

Already have an account? SIGN IN

By clicking Create Account you confirm that your data has been entered correctly and you have read and agree to our Terms of use , Cookie policy and Privacy policy .

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged in