Wednesday, December 7, 2011

'Merkozy' tax piles pressure on PM

by Nick Robinson

BBC News

December 7, 2011

The man who once told his party to stop obsessing about Europe is now having to do just that.

The EU summit which starts tomorrow could determine not just the fate of the British economy but of a Coalition which is deeply divided on this issue.

Today one MP after another leapt to their feet to ask the prime minister what he would do to see off what they see as the threat of further EU integration - a threat made all the more real by the letter written by the couple now known simply as "Merkozy".

The proposals of Germany's Chancellor Merkel and France's President Sarkozy - for a Euro tax on financial transactions, a common approach to company taxes, and common employment rules - are precisely the sort of agenda so loathed by so many British Conservatives.

Many now want their leader to take advantage of what they see as a once-in-a-lifetime opportunity to redefine Britain's entire relationship with the EU.

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