Courtesy of Mish.
German finance minister Wolfgang Schäuble 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.
Schäuble’s threats are laughable because they are unenforceable, yet extremely serious because of likely end results.
Please consider yet another foolish EU threat: Wolfgang Schäuble 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 Schäuble 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 Schäuble 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 Schäuble 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.
