Monday, June 20, 2005

Solution To The EU Budget Crisis

Chirac, Schroder and the revolving postage stamp are still whining for the UK to pick up the tab for the EU. Blair’s an obliging chap, but knows that if he does that, Brit taxes will go up, the Brits will withdraw from the EU, and he won’t get to be EU President.

Here’s the DU Statesmanlike Solution™.

The Germans, French, Spanish, Portuguese, Greeks etc are looking for another 6 billion euros annually off the Brits. They can get this by just raising the prices of the products they export to them!

In first 11 months of 2004, EU exports to UK were 183 billion euros - say 200 billion euros for a whole year.

If every EU country raised its prices to the UK by just 6/200, a miserly 3%, they’d be home free. Allowing for price elasticity causing the Brits to buy less, I’d go for 5%.

Of course this would be illegal under EU rules, but so was France and Germany breaching the Euro Stability Pact, and nobody stopped them.

If the Brits felt that paying an extra 5p for every £ they spent on EU products was worthwhile, everyone would be happy.

If the Brits didn’t feel it was worthwhile, they'd buy elsewhere, thus proving themselves unreconstructed Anglo-Saxon capitalists and justifying their immediate ejection from the EU.

If it so desires, I will license this plan to the EU at quite reasonable rates.