Wolfgang Schauble Turns to Threats and Extortion: Just Another Petty Nannycrat Who Doesn't Understand Free Trade

By: Mike Shedlock | Sat, Nov 19, 2016
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German finance minister Wolfgang Schauble warns the UK faces stiff rules on tax breaks and prolonged EU payments.

Such threats are nothing more than an extortion attempt by the EU on the UK.

Schauble's threats are laughable because they are unenforceable, yet extremely serious because of likely end results.

Nannycrat Wolfgang Schauble

Please consider yet another foolish EU threat: Wolfgang Schauble Sets Out Tough Line on Brexit.

Germany's finance minister has set out a tough line on EU divorce talks with Britain on issues from tax breaks to exit costs, dashing Downing Street hopes Berlin would soften Europe's stance on a UK departure from the bloc.

Theresa May's government has been looking to Germany, a net exporter to the UK, to temper French demands that Britain "pay a price" for its decision to leave.

But Wolfgang Schauble told the Financial Times that, even after Brexit, the UK would be bound by tax rules that would restrict it from granting incentives to keep investors in the country -- and would also face EU budget bills for more than a decade.

"Until the UK's exit is complete, Britain will certainly have to fulfil its commitments," he said. "Possibly there will be some commitments that last beyond the exit?…?even, in part, to 2030 ... Also we cannot grant any generous rebates."

In addition to demands for long-term financial payments, Mr Schauble insisted Britain must stick to international rules on investment incentives, a clear signal Berlin would closely watch commitment like those Mrs May made to carmaker Nissan, which recently won government assurances before it agreed to build new models in the UK

"These rules apply to all whether EU members or not," he said.

Mr Schauble noted that Group of 20 agreements commit members to limiting tax avoidance -- an initiative, led by Germany and the UK, that would reduce Britain's ability to grant breaks to companies, even after leaving the bloc.


Amazing Arrogance

The UK is out of the EU as soon as it says so, not as soon as the EU lets the UK go.

The clear answer to the UK's non-dilemma over group of 20 agreements is to renounce them immediately.

"There is no à la carte menu. There is only the whole menu or none," said Schauble, arguing that British restrictions on EU immigration would end financial services companies' free access to EU markets under so-called passporting rules.

"The UK is still a member of the EU and it is a country which has always upheld the valid regulations, valid laws and valid treaties," added Schauble.

Well la-de-friggin-da.

Schauble acts like a spoiled brat who thinks he has all the marbles, when there is a far bigger pile elsewhere.

The UK does not need 27 nations to agree the UK can leave. Moreover, it is increasingly obvious to anyone watching that the EU is totally dysfunctional and will never agree on much of anything.

The UK can kiss off the EU anytime it wants. I suggest prime minister Theresa May fire off a warning salvo immediately, renouncing Group of 20 Agreements.

EU buffoonery is completely out of hand.

In related news, please consider EU the Toothless Tiger, Totally Dysfunctional Until it Disintegrates Into Oblivion.


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These EU fools are playing with a Smoot-Hawley style global deflationary collapse.

 


 

Mike Shedlock

Author: Mike Shedlock

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Mike Shedlock

Michael "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Visit http://www.sitkapacific.com/ to learn more about wealth management for investors seeking strong performance with low volatility.

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