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If London treated Britain like Germany treats the eurozone, Londoners would pay no income tax

posted on Jan 30, 2015

As Germany refuses to bail out poorer nations like Greece, James Kirkup looks at the finances of Britain's own Germany: London
 The poor old Germans are getting it in the neck again. Mark Carney, the Governor of the Bank of England, is the latest economic authority to criticise Germany’s reluctance to help out struggling eurozone members like Greece with cold hard cash.

The argument made by Mr Carney and others is that the single European currency cannot work without a system of fiscal transfers. In a nutshell, the argument is that if Germany and its export-driven economy is going to benefit from an exchange rate that is lower than it would have on its own, it should surely accept that it has to lend its financial support to weaker Eurozone members who can no longer devalue their way out of trouble.

Oddly, German taxpayers and German politicians don’t see it that way, asking why should hard-working successful people toil to support less industrious folk elsewhere?

That question is a familiar one in Britain, because we have our own Germany. It’s called London.

The UK capital is different from the rest of the country. Very different, and getting more so. Employment, incomes, house prices – they’re all higher than elsewhere.

Read full article

Source: telegraph.co.uk

Image source: telegraph.co.uk

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