PM: EU transaction tax plan madness

PM: EU transaction tax plan madness

David Cameron delivered a scathing assessment of Europe's failure to promote economic growth as he urged it to be "bold" to promote business.

The Prime Minister said it was no time for "tinkering" and described European Union plans for a financial transactions tax as "madness". In a speech to the World Economic Forum in Davos, he was strongly critical of what he said were anti-competitive Brussels regulations and the flawed framework for the euro.

"In Britain we are taking bold steps necessary to get our economy back on track, but my argument today is that the need for bold action at European level is equally great," he said. "Europe's lack of competitiveness remains its Achilles heel."

The annual gathering comes amid renewed gloom about the economy after the International Monetary Fund this week downgraded its forecasts for global growth. Britain is facing the prospect of a return to recession after the Office of National Statistics on Wednesday reported a 0.2% contraction in the UK economy in the final quarter of 2011.

Mr Cameron accused the EU, despite the economic challenge, of "doing things to make life even harder". He attacked the "unnecessary " regulations on business that "can destroy jobs" and said the proposed financial transactions tax could cost hundreds of thousands of jobs.

David Cameron described EU plans for a
financial transactions tax as 'madness

"Even to be considering this at a time when we are struggling to get our economies growing is quite simply madness," he said.

The Prime Minister suggested the eurozone had none of the features common to successful currency unions like the US dollar and British sterling.

In a message to his European counterparts, Mr Cameron went on: "This is a time to show the leadership our people are demanding. Tinkering here and there and hoping we'll drift to a solution simply won't cut it any more. This is a time for boldness, not caution. Boldness in what we do nationally - and together as a continent."

But he sought to reassure his European counterparts that, despite vetoing a new EU treaty to deal with the eurozone crisis in December, he wanted Britain to remain within the EU - contrary to the demands of some Tory backbenchers.

He said: "To those who think that not signing the treaty means Britain is somehow walking away from Europe let me tell you, nothing could be further from the truth. Britain is part of the European Union. Not by default but by choice. It fundamentally reflects our national interest to be part of the single market on our doorstep and we have no intention of walking away."

©YahooNews 2012

PM: WE NEED MORE MAINSTREAM FILMS

David Cameron urged the British film industry to concentrate on making more mainstream movies today.

The Prime Minister signalled he wanted producers to get more help to generate "commercially successful" independent pictures that are not bankrolled by Hollywood.

The comments came ahead of a visit to the famous Pinewood studios in Buckinghamshire - set of numerous James Bond films - and with Lord Smith's review of Government policy due to be published next week.

The Labour former culture secretary is expected to recommend rebalancing Lottery funding in favour of independent pictures with mainstream potential, and the development of an export strategy for UK film expertise.

Last year's Oscar winner The King's Speech has earned around £250 million at the box office worldwide, making it the UK's highest grossing independent film of all time. The movie's budget is said to have been just £9 million.

Mr Cameron hailed the British film industry, saying it made a £4 billion annual contribution to the economy and an "incalculable contribution to our culture".

"But in this year when we set out bold ambitions for the future, when the eyes of the world will be on us, I think we should aim even higher, building on the incredible success of recent years," he said.

"Our role, and that of the British Film Institute (BFI), should be to support the sector in becoming even more dynamic and entrepreneurial, helping UK producers to make commercially successful pictures that rival the quality and impact of the best international productions.

"Just as the British Film Commission has played a crucial role in attracting the biggest and best international studios to produce their films here, so we must incentivise UK producers to chase new markets both here and overseas."

The premier is due to hold talks with small and medium sized businesses during his visit to Pinewood later.

The studios have been operating for more than 70 years, hosting Bond films including The Spy Who Loved Me, View to a Kill and, more recently, Quantum of Solace.

They were also used for blockbusters Mamma Mia! and Prince of Persia: The Sands of Time.

Film director Ken Loach told BBC Breakfast: "If everybody knew what would be successful before it was made, there would be no problem.

"What you have to do is fund a lot of different, varied projects and then some will be successful, some will be original, some will be creative, and you will get a very vibrant industry."

He said there were issues "that this review signally will fail to challenge - one is the monopoly of the multiplexes where you get a very narrow range of films".

"We do not have, as in other countries in Europe, a wide spread of independent cinemas. Now, unless you can really see a wide variety of films you don't have a vibrant film industry and we get a very narrow menu."

He added: "If you went to an art gallery and you just saw ducks flying into the sunset, you would think that it was a rather limited art gallery - you would want a wide variety of ... paintings.

"We don't get that, and that is the opportunity I fear this review will miss."

© Press Association 2012

CAMERON WARNING ON THE EURO

The PM has warned the Eurozone leaders that  action is need to ensure the survival of the Euro

David Cameron issued a warning to eurozone leaders today that they need to take some "pretty decisive steps" if the single currency is to survive.

The Prime Minister said he believed the "most likely outcome" was that the euro would hold together, despite the current debt crisis.

But he stressed that in the longer term it was essential to address the "fundamental competitiveness divide" between the powerful German economy and the weaker southern states.

"I think that the most likely outcome is, yes, it will hold together but it has to take some pretty decisive steps," he told Sky News's Boulton & Co.

"There are the short-term sticking plaster steps of a proper firewall to prevent contagion around Europe, a much more decisive settlement for Greece which the problem still hasn't gone away, strengthening the European banks.

"But that is only the short term. The longer term is that you have got to address the fact that there is a lack of competitiveness between Germany on the one hand and many of the southern European countries on the other.

"You can't have a single currency with those fundamental competitiveness divides unless you have massive transfers of wealth from one part of Europe to another."

Mr Cameron stressed it was in Britain's interest to see the eurozone recover, as the current crisis was having a "chilling effect" on the UK economy.

"We have got to help deal with it," he said.

He did not rule out additional UK support for the International Monetary Fund on top of the £10 billion approved by the Commons in July - a move which would infuriate Tory MPs.

"We have set out our conditions for contributing more to the IMF. We support countries and not currencies or currency zones. The IMF shouldn't be doing what the eurozone itself should be doing," he said.

Mr Cameron acknowledged that his decision last month to wield the British veto to block a new treaty of all 27 EU member states had created a "pressure point" in his coalition with the Liberal Democrats.

However, he stressed that he continued to work closely with Deputy Prime Minister Nick Clegg.

"We both wanted a treaty at 27, but with safeguards for Britain," he said.

"We both agreed if we couldn't get those safeguards we couldn't agree a treaty. That is what happened. Of course the Liberal Democrats were disappointed with that," he said.

PA 2012

PM'S PLEDGES ON EU 'UNRAVELLING

Labour said Prime Minister David Cameron's pledges on the EU were "rapidly unravelling" after a draft EU agreement suggested Britain could be left out of decisions affecting the single market.

The latest version of the proposed fiscal accord between the other 26 member states also said EU institutions would be involved in policing tough new deficit rules.

Mr Cameron will do "everything possible" to make sure the UK is in the decision making process of the EU

Mr Cameron vowed yesterday to do "everything possible" to prevent that happening after using the UK's veto last month to block the new rules being introduced across the EU.

But the document suggests he faces a tough battle with fellow leaders - who meet later this month for further discussions over the deal, which is due to be concluded by March.

It was reported that France was behind amendments to the developing text, designed to shore up the eurozone, which specifically talk about "deeper integration in the internal market".

It also envisages the new arrangements being brought within the EU as a whole within five years.

Yesterday, the Prime Minister said he would do "everything possible" to stop signatories to the treaty from using EU institutions such as the European Commission and European Court of Justice.

He conceded that there were "legal difficulties" but insisted any new treaty should be about fiscal union and not the single market.

Mr Cameron also made clear his opposition to the group - which could include every one of the other 26 member states - making decisions on areas around the single market or competitiveness.

"What we can't have is the single market being discussed outside of the European Union and we will do everything possible to make sure that doesn't happen," he told the BBC.

Downing Street said it would not offer a "running commentary" on the negotiations but the draft was seized on by critics as proof Mr Cameron's use of the veto had backfired.

Shadow foreign secretary Douglas Alexander said: "David Cameron's European guarantees are rapidly unravelling.

"In the last 24 hours he has admitted he secured no additional safeguards for Britain and now his claim we will not be excluded from discussions on the single market looks increasingly threadbare.

"When jobs and growth in Britain depend on an effective resolution to the eurozone crisis David Cameron's decision to walk away from the table is looking increasingly reckless."

UK Independence Party leader Nigel Farage said: "If this leaked document shows that Britain will be frozen out of the EU's future decision making process, yet still subject to its effects, then David Cameron really has no choice but to hold a referendum on the UK's continued membership of the EU in order to let the people decide if they want to be part of such a skewed relationship."

Pressure on Mr Cameron to agree a resolution will also come on Monday from Deputy Prime Minister Nick Clegg who is hosting a summit of prominent Liberal politicians from across the EU.

He is expected to use the high-profile gathering to press for the UK to use its "considerable clout in the heart of Europe" to find a solution that protects British interests.

Among those leading discussions alongside Mr Clegg will be the Dutch prime minister Mark Rutte and Olli Rehn the European Commissioner for Economic and Monetary Affairs.


PA 2012