A well designed Europe-wide financial transactions tax could be a powerful source of revenue for the EU budget

What would be the implications of a financial transactions tax in Europe? While the French argue such a tax would help stabilize the debt crisis, the British believe that the instrument would prompt an exodus of financial activity to other parts of the world. Iain Begg argues that the latter argument may not hold, and that the tax could become a source of revenue for governments if introduced as a ‘tax for Europe’. There has been much debate in recent months about a financial transactions tax (FTT), with some Member States, notably France, very keen to see its introduction, while others are more sceptical. Given the prominence of the City of London in its economy, the UK, not surprisingly, is opposed to the introduction of such a tax in the European Union because of fears that it would prompt an exodus of financial activity to other parts of the world. For the UK, the argument is that unless a global FTT (which it claims to support) can be introduced, imposing such a tax unilaterally in Europe would be tantamount to an own goal

The Cypriot banking crisis shows that Europeans have yet to work out the answer to the question, ‘who pays?’

The past week has been a tumultuous one for Cyprus, with negotiations and renegotiations towards a bailout for the country’s embattled banks. While an agreement has finally been struck, Iain Begg writes that the crisis is a direct result of an over-extended banking system: something that also affects other Eurozone members. The solution, to make bank depositors pay, could undermine confidence in the Eurozone’s banking system

Structural policy and economic convergence

EU-Regionalfonds,, Entwicklungskonvergenz, EU-Staaten, EU cohesion fund, Economic convergence, EU countries

Economic governance in an enlarged euro area

Ten years on from its launch, it is clear that EMU, which has to be regarded as a more profound regime change than is often acknowledged, has had a pronounced effect on economic governance. As a framework for the conduct of macroeconomic policy, EMU has had undoubted successes in assuring price stability and in instilling greater fiscal discipline, yet it is open to the criticism that it has not (yet?) delivered improved performance in the real economy. Moreover, some of the compromises made at the outset and over the twenty years since the roadmap for EMU was first set out, notably to reconcile divergent French and German preferences, have left certain elements of the policy architecture unresolved. In the coming years, several more Member States are expected to become full participants in EMU, so that fresh thinking on the governance arrangements is warranted, not least to accommodate the rather different economic characteristics of the candidate countries.Begg, euro area enlargement, governance, economic policy co-ordination, EMU

The 2008/2009 review of the EU budget: Real or cosmetic?

Europäische Wirtschafts- und Währungsunion, Öffentlicher Haushalt, European Economic and Monetary Union, Public Budget

The economics of Brexit: which side should we believe?

One of the key issues in the context of the UK’s EU referendum is the effect a Brexit would have on the country’s economy. Iain Begg assesses the economic claims that have been made so far in the campaign, noting that there have been misleading figures put forward by both sides of the debate

Deepening EU economic governance: the next steps

Earlier this year, the so called ‘Five Presidents’ report’, authored by Jean-Claude Juncker, Donald Tusk, Jeroen Dijsselbloem, Mario Draghi, and Martin Schulz, was published, outlining plans for strengthening economic and monetary union. Iain Begg writes on proposals adopted by the European Commission on 21 October to implement the recommendations in the report. He notes that the new plans show Eurozone reforms with a decidedly integrating impact are going ahead, and that there could be some potential consequences for the UK’s attempts to renegotiate its EU membership

What might Brexit look like? No one really knows

Professor Iain Begg says the lack of a clear vision for the UK’s future post-EU is cause for concer

Theresa May’s timeline for Brexit: canny tactics or Brexishambles?

Theresa May has stated that the UK will trigger Article 50 before the end of March 2017. Iain Begg writes that while her speech gave some indication of timing, there is still no concrete statement on what kind of relationship the UK would actually like to negotiate with the EU. In the absence of this level of clarity he argues that the process risks turning into a shambles

Margaret Thatcher maintained a difficult relationship with Europe, but she was far from a figurehead for Euroscepticism.

The funeral of Margaret Thatcher, the former British Prime Minister, is due to be held in London today. Reassessing her impact on Britain’s relationship with Europe, Iain Begg argues that she maintained a far more nuanced position on Europe than is commonly recognised. The image of a staunchly Eurosceptic Prime Minister is at odds with her support for the single European market and her assertion, in her 1988 Bruges speech, that the UK’s destiny is to be inside the European Community