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The prospects of Turkey joining the EU faded yesterday (29 May) as the French National Assembly approved a bill making referenda obligatory for accepting new EU member countries with populations over 5% of the bloc's entire size. The proposal, which was introduced as part of a broader institutional reform project, was accepted with a 48-21 vote majority and has now been sent to the Senate for approval. The final vote will be in July, when both chambers convene for a joint session. The move comes just one day after MEPs and the Commission heavily criticised Turkey for slowing down the pace of reforms during the visit of the Turkish foreign minister Ali Babacan to Brussels (see EurActiv 29/05/08).
The prospects of Turkey joining the EU faded yesterday (29 May) as the French National Assembly approved a bill making referenda obligatory for accepting new EU member countries with populations over 5% of the bloc's entire size.
The proposal, which was introduced as part of a broader institutional reform project, was accepted with a 48-21 vote majority and has now been sent to the Senate for approval. The final vote will be in July, when both chambers convene for a joint session.
The move comes just one day after MEPs and the Commission heavily criticised Turkey for slowing down the pace of reforms during the visit of the Turkish foreign minister Ali Babacan to Brussels (see EurActiv 29/05/08).
Commercial fishermen throughout Europe launched new protests Friday against soaring fuel bills, blockading ports and refineries in France and handing out fresh fish for free in Madrid. The protests against diesel fuel costs have been simmering all week, with truckers in Britain blocking highways and fishing vessels halting port traffic on the English Channel in France. Outside the Ministry of Environment, Agriculture and Fishing in Madrid, news agencies reported that hundreds of angry fishermen handed out 20 tons of fish to people lined up at trucks loaded with the catch of Europe's biggest fishing fleet. Spanish union leaders claimed the strike among fishermen had 100 percent support. The Spanish government has not responded to the protests but more trouble is on the way: truck and taxi drivers are threatening a strike next week.
Commercial fishermen throughout Europe launched new protests Friday against soaring fuel bills, blockading ports and refineries in France and handing out fresh fish for free in Madrid.
The protests against diesel fuel costs have been simmering all week, with truckers in Britain blocking highways and fishing vessels halting port traffic on the English Channel in France.
Outside the Ministry of Environment, Agriculture and Fishing in Madrid, news agencies reported that hundreds of angry fishermen handed out 20 tons of fish to people lined up at trucks loaded with the catch of Europe's biggest fishing fleet. Spanish union leaders claimed the strike among fishermen had 100 percent support.
The Spanish government has not responded to the protests but more trouble is on the way: truck and taxi drivers are threatening a strike next week.
Pressure is building in the European Union for common rules to discourage, or punish, excessive payments to top business executives. France, which takes over the presidency of the EU on 1 July, will ask finance ministers to consider a European directive to curb disproportionate bonuses or golden handshakes to company bosses. The Dutch government has already introduced a draft national law to punish what it describes as "unjustifiable" payments to business leaders. The French finance minister, Christine Lagarde, said companies must put their own house in order or face a rash of national, or EU, legislation to clamp down on "excesses". French officials said Paris felt that, without such an EU-wide curb, large companies or highly paid executives would evade national curbs by exercising their right to move from one EU country to another. Jean-Claude Juncker, Luxembourg's Prime Minister, and president of the "Eurogroup" - the countries using the Euro - recently described steep increases in executive pay as a "social scourge". He said EU governments should consider ways of punishing disproportionate bonuses and high severance payments with windfall taxes.
Pressure is building in the European Union for common rules to discourage, or punish, excessive payments to top business executives.
France, which takes over the presidency of the EU on 1 July, will ask finance ministers to consider a European directive to curb disproportionate bonuses or golden handshakes to company bosses. The Dutch government has already introduced a draft national law to punish what it describes as "unjustifiable" payments to business leaders. The French finance minister, Christine Lagarde, said companies must put their own house in order or face a rash of national, or EU, legislation to clamp down on "excesses".
French officials said Paris felt that, without such an EU-wide curb, large companies or highly paid executives would evade national curbs by exercising their right to move from one EU country to another.
Jean-Claude Juncker, Luxembourg's Prime Minister, and president of the "Eurogroup" - the countries using the Euro - recently described steep increases in executive pay as a "social scourge". He said EU governments should consider ways of punishing disproportionate bonuses and high severance payments with windfall taxes.
Wouter Bos, Dutch finance minister (and leader of the social-democratic PvdA party), has also been making some noise about more economic governance in the eurozone, which used to be something only the French advocated.
Also see my Feb. 2007 diary Eurozone Economic Governance. Bos is a big improvement over Zalm, at least internationally.
In the UK the highest marginal rate of 40% kicks in slightly below 2xGDP/head. A 60% rate tax above 4xGDP/head (that's over £90k) couldn't hurt. And an 80% rate above 8x wouldn't be bad either. When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes
Let's see... GDP per capita is already higher than median income.
Assume 0% below 1/2 GDP 10% between .5x and 1 x GDP 20% between 1x and 2x GDP 40% between 2x and 4x GDP 60% between 4x and 8x GDP 80% between 8x and 16x GDP 90% above 32x GDP
Your upper-middle class professional making 200k would pay 86.25k which is only 43% - but the point is that someone making 100k and getting a 100k bonus would only pocket 40k of the bonus, and that 100k + 100k is already indecent, if you ask me. At the upper end of the 80% tax bracket (400k) they'd pay 52%. When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes
They wouldn't get to keep the cash either way, but it could do some interesting things if pushed in certain directions.
Such investments essentially allow high brackets tax payers to get interests on their taxes...
Plus, it means that unlike lower income tax payers, higher income tax payers get to decide which government programs their taxes are spent on. Very undemocratic.
An example : to help service employment, house employee's wages are tax deductible, in France. Which concretely means that if you pay enough taxes, your babysitters eventually cost you half their wages ; that's very regressive... Un roi sans divertissement est un homme plein de misères
Just to point out that François Hollande, when he said, "I hate the rich" during the presidential campaign, got burned for defining "rich" as someone who made more than 4000 a month. I'd say even those making 8000 a months are not perceived as obscenely rich in Europe.
What do we define as unhealthy inequality ? I fully agree with you that 200 k is already obscene, but that's not the public perception of it. Someone who did well on the property bubble, buying a 200 k house at the low point and selling it when prices have doubled, will be in that bracket ; and that's the case the opponents will put forward.
Even many parts of the upper middle class making that kind of money yearly are not perceived as "one of them" by most of the population. That's the arguments that have been used to push down the rates : it's normal people that are benefiting from lower taxes.
Unhealthy inequality is currently that of the upper percentile of the population, the kind of income that allows one to own large companies, etc. That's income above 500 k, not 100 k. It's possible to make those earning more than 500 k into them ; not as much for those earning more than 100 k. And high marginal rates will be much more viable if they only hit the wealthiest ; as pointed by the Hollande polemic : if you aim too low incomes, the tax rates will quickly come back down. Un roi sans divertissement est un homme plein de misères
Assume 0% below 1x GDP 10% between 1x and 2x GDP 20% between 2x and 4x GDP 40% between 4x and 8x GDP 60% between 8x and 16x GDP 80% between 16x and 32x GDP 90% above 64x GDP 100% above 128x GDP
I.e., you shouldn't make more than 256k/mo... When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes
Assume 0% below 20x GDP wealth 2% between 20x and 40x GDP 4% between 40x and 80x GDP 8% between 80x and 160x GDP 12% between 160x and 320x GDP 16% between 320x and 640x GDP 18% between 1280x GDP and 2560x GDP 20% above 2560x GDP
Assuming GDP/head = 25k, we're talking no wealth tax below 500k, and 20% above 64M. When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes
Assume 0% below 30x GDP wealth 1% between 30x and 60x GDP 2% between 60x and 120x GDP 4% between 120x and 250x GDP 8% between 250x and 500x GDP 12% between 500x and 1000x GDP 16% between 2000x GDP and 4000x GDP 18% between 4000x GDP and 8000x GDP 19% between 8000x GDP and 16000x GDP 20% above 16000x GDP
The top bracket kicks in at 400M. When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done. — John M. Keynes
4xGDP per head.
I am more accustomed to seeing this referred to as multiples of the "average wage" or "the median wage" (quite different things, for sure). Does GDP refer to gross domestic product? "It is not necessary to have hope in order to persevere."
by the time the tax forms are mailed out the GDP/head for the previous year has been computed.
I can see the advantages of that. But what portion of GDP does total national wages form? Can I presume that the individuals income would be all income, including dividends, investment income, etc?
In the US we need to put high taxes on large estates as well. As Willie Sutton observed: "Cause that is where the money is." "It is not necessary to have hope in order to persevere."
And about taxing estates, that's why I talked about wealth tax upthread... Un roi sans divertissement est un homme plein de misères
The Conservatives predict that 25,000 children will leave the state education system when they are 16 in the next few weeks without a single qualification to their name. It is why David Cameron and Michael Gove have looked overseas to the Swedish model to try to stop the rot. In Sweden 900 schools have opted out of the state delivery system to become "free schools", which is five per cent of primary schools, 15 per cent secondary. More than 1,500 applications were granted last year for more schools to join the exodus. Many of the applications for new schools are from parents battling with a council which is threatening to close down a local school. Swedish parents don't protest against school closures - they apply to open a rival school.
It is why David Cameron and Michael Gove have looked overseas to the Swedish model to try to stop the rot.
In Sweden 900 schools have opted out of the state delivery system to become "free schools", which is five per cent of primary schools, 15 per cent secondary. More than 1,500 applications were granted last year for more schools to join the exodus.
Many of the applications for new schools are from parents battling with a council which is threatening to close down a local school. Swedish parents don't protest against school closures - they apply to open a rival school.
Inflation in the 15 countries sharing the euro snapped back to a record 3.6 percent in May amid soaring oil prices, according to a first estimate from the EU's Eurostat data agency on Friday. The 12-month inflation rate had eased in April to 3.3 percent after hitting 3.6 percent in March, the highest level since the launch of the euro in 1999. Recent record oil and food prices have pushed inflation higher, putting additional strain on consumers and businesses already struggling with slowing economic growth. The bounce-back to 3.6 percent in May took eurozone inflation further away from the European Central Bank's comfort zone, which it defines as annual consumer price growth of close to but less than 2.0 percent.
Inflation in the 15 countries sharing the euro snapped back to a record 3.6 percent in May amid soaring oil prices, according to a first estimate from the EU's Eurostat data agency on Friday.
The 12-month inflation rate had eased in April to 3.3 percent after hitting 3.6 percent in March, the highest level since the launch of the euro in 1999.
Recent record oil and food prices have pushed inflation higher, putting additional strain on consumers and businesses already struggling with slowing economic growth.
The bounce-back to 3.6 percent in May took eurozone inflation further away from the European Central Bank's comfort zone, which it defines as annual consumer price growth of close to but less than 2.0 percent.
There's nothing the central bank can do about this inflation either on the upside or on the downside. It's not something that lends itself to monetary solutions. Differing perspectives on what the bank should do by the EU governments (mostly false, but erring on both sides) mean that it will likely do nothing. This should hopefully open a possibility for real long-term solutions through industrial and transportation policy.
When tradition dictates that rates must go up, up they'll go.
This will make no sense and will be a bad thing, but the monetarists only have tradition to draw on. Expecting anything else is equivalent to expecting them to innovate, which isn't something central banks are good at.
I expect that national policy will trump ideology, so the German/Dutch/Austrian hardline policy and the Mediterranean demand for lower interest rates should cancel each other out. It's not a naive scenario - it's what's been happening so far this year.
Business airline Silverjet has gone into administration after financial problems forced it to suspend all its flights, leaving passengers stranded. The cancellations left about 7,000 UK and 2,500 non-UK customers needing to make alternative plans at short notice.
Business airline Silverjet has gone into administration after financial problems forced it to suspend all its flights, leaving passengers stranded.
The cancellations left about 7,000 UK and 2,500 non-UK customers needing to make alternative plans at short notice.
Seats were selling for £1000/return to New York and Dubai - which wouldn't normally be expensive for a business class trip.
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