Letter: That EU `tax plan'

Martin Rutherford
Wednesday 02 December 1998 19:02 EST
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Sir: Left-wing supporters of EMU favour the single currency because they believe that greater power for the EU will protect the UK from the excesses of free-market capitalism. Right-wing supporters of EMU believe that the single currency will further instill the ideas of free markets and freer movement of factors of production at a more international level. Both are wrong.

A broader, freer market will inevitably cause greater income differentials within the EU, nullifying the arguments of the left. The interventionist tendency of newly elected left-wing governments across Europe will offset the gains from monetary union envisaged by pro-Europeans of right-wing tendency.

MARTIN RUTHERFORD

Newcastle upon Tyne

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