ISSUE 2173 Monday 7 May 2001

Brown tells EU to mind its own business
By Benedict Brogan, Political Correspondent

GORDON BROWN will stage a pre-election confrontation with the European Commission today by warning Brussels that it has "no business" interfering in British economic policy.
The Chancellor will demand changes to the EU economic guidelines which called on Britain to impose a cap on public spending. He will use the monthly meeting of European finance ministers to criticise the draft set of rules which the Treasury claims has unfairly singled out Britain.

He was incensed by the EU call to limit future public expenditure to forecasts in his March Budget, which predict that state spending in 2003 will total 37.3 per cent of GDP. Mr Brown fears that the EU is seeking to dictate British tax and spending policy. Treasury sources said it represented a "worrying departure" and the first time it has sought to intervene in an EU member's internal affairs.

With William Hague eager to make his "save the pound" pledge a focal point of the election campaign, Labour is keen to play down Europe as an issue. Mr Brown will try to force through changes to the EU's 2001 Broad Economic Policy Guidelines. If his amendments are not accepted, he faces having to debate them again at the next meeting, 48 hours before polling day. Mr Brown will also urge the EU to take a "leadership role" in helping to revive the world economy in the face of the American slow-down.

http://www.telegraph.co.uk/et?ac=001851641145319&rtmo=asRpHX3L&atmo=99999999&pg=/et/01/5/7/nbro07.html

26 April 2001: EC tells Brown to curb spending

http://www.telegraph.co.uk/et?ac=001851641145319&rtmo=lvoSSSPt&atmo=99999999&pg=/et/01/4/26/nbro26.html

15 April 2001: [International] Brussels renews drive to set British tax rates

http://www.telegraph.co.uk/et?ac=001851641145319&rtmo=lvoSSSPt&atmo=99999999&pg=/et/01/4/15/wtax15.html

9 April 2001: Tories find 'proof' of European VAT plan

http://www.telegraph.co.uk/et?ac=001851641145319&rtmo=lvoSSSPt&atmo=99999999&pg=/et/01/4/9/nvat09.html

27 March 2001: [International] Belgium calls for direct EU tax

http://www.telegraph.co.uk/et?ac=001851641145319&rtmo=lvoSSSPt&atmo=99999999&pg=/et/01/3/27/wbul27.html#go4

19 March 2000: [International] Blair faces EU ambush over tax harmonisation

http://www.telegraph.co.uk/et?ac=001851641145319&rtmo=lvoSSSPt&atmo=99999999&pg=/et/00/3/19/weu19.html

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