Tag Archives: European Union

Germany’s trade surplus is a threat to the EU

With Emmanuel Macron’s election as French president, a sharp critic of Germany’s vast export surplus has become one of the most powerful men in Europe. Although his opinion is shared widely by commentators, politicians, and organisations such as the IMF, the German public is still largely ignorant of the devastating consequences of the macroeconomic policies of its current government. Unless this changes, the internal cohesion of the European Union and the well-being of its citizens are under serious threat….

Read the rest at: CapX

FORGET FREXIT, THE EU’S NEXT THREAT COMES FROM THE EAST

In about two years, the United Kingdom will officially leave the European Union, and commentators around the continent are speculating about which country will be next. In Western Europe eyes are on France and the Netherlands, as both have strong Euroskeptic movements, bolstered by anti-immigration parties. But to identify the larger but creeping threat to the EU, you need to look east.

One country facing a rising tide of Euroskepticism is the Czech Republic. Anti-immigration sentiment has surged in the Central European state ever since it joined the EU in 2004.

About two thirds of Czech people oppose taking in refugees, and a 2015 poll found that 94 percent favor closing the borders completely. Czech politicians have capitalized on these sentiments, with a growing number of politicians running under an “anti-immigration” banner.

Continue reading in Newsweek 

There’s No Such Thing As Corporate Tax

The EU reaffirmed its commitment to fighting corporate tax avoidance through a statement by European Commissioner Pierre Moscovici. This should come as no surprise following recent financial scandals exposed through the Panama Papers and Luxleaks, and the ensuing international outrage towards corporations “not paying their fair share”. Yet, the push for higher corporate taxes disproportionately also affects ordinary citizens by increasing their tax burden.

Corporate tax avoidance is regularly said to be unfair to other taxpayers. Indeed, proponents of higher corporate taxes accuse multinational companies of de facto increasing ordinary citizens’ tax burden because these ones would be forced to compensate states’ budget shortfalls.

However, this artificial opposition between corporate and public interests is dishonest. When one argues corporations don’t pay taxes, the implication is that shareholders, workers and consumers are not taxed at all, which is completely untrue. All these people are taxed in various ways, including income tax and valued-added tax, among other costs imposed by national governments. The only purpose of this distinction is to push ordinary citizens to support higher corporate taxes without allowing them to realise they are the ones who are going to pay the bill.

In fact, a corporation is a legal fiction which aims to reduce transaction costs between physical stakeholders, which are shareholders, workers and consumers. Consequently, every fiscal cost imposed on corporations will necessarily be paid by these people. Therefore, as corporate taxes increase, shareholders’ dividends and workers’ salaries will decrease, while consumers will be forced to pay more for their purchases.

Read more at the The Daily Caller 

The UK High Court’s Invalidation of Brexit Is a Constitutional Crisis in the Making

The UK High Court has struck down Brexit. Such a repudiation of the national will, and of legislation already approved by parliament, has the potential to permanently warp Great Britain’s rule of law. Indeed, it may already have.

This controversy, at the core, highlights a battle over democracy and parliamentary sovereignty. An indispensable feature of both is that there must be a warranty that once a fully rendered decision is arrived at and approved through proper means, that decision must hold.

Once such a warranty no longer exists, people will lose faith in their government. This loss of confidence may require a new government, which is normally the case in smaller, less threatening crises. Prime Minister David Cameron himself resigned after campaigning to keep Britain in the European Union and failing to do so.

Big crises, constitutional crises, happen when a sovereign power is meant to or guarantees to abide by the results of a decision by the people and then reneges on that promise. And that is precisely what happened when three judges from the UK High Court ruled that Britain can’t leave the EU without having a parliamentary vote to do so. Yet that parliamentary vote already happened with the European Referendum Act of 2015.

Great Britain has contended with crises of serious proportions before, involving existential questions about nationhood. And although British rule of law survived, the resolution required a wholesale reconfiguration of the constitutional monarchy.

Continue reading at Townhall.

Europe’s Show Trials Are Where America’s Anti-Speech Regime Is Going

American politics has taken a bad turn. We see this in an increase in politically motivated criminal charges. At universities, students’ due process protections are being eliminated in favor of a politically modish star chamber. One presidential candidate even promised to appoint a special prosecutor to investigate the other.

Absent a serious reexamination of these practices, injustice will become a fixed custom. To see where we’re headed, we need only look to Europe, where prosecution for one’s politics has already become the norm.

During a 2014 election rally, Geert Wilders, Dutch parliamentarian and head of the Netherlands’ Party for Freedom (PVV), asked the crowd if they wanted fewer or more Moroccans in the country. Supporters chanted “fewer, fewer,” and Wilders replied, “We’ll take care of that.”

The Hague Public Prosecutors subsequently decided Mr. Wilders had committed a hate crime.

Wilders’ trial is not the beginning, and it won’t be the end of this type of legal miscarriage. Peering across the pond, one perceives a decaying continental rule of law, birthing its orphan child: the show trial.

Continue reading at The Federalist.