Proposing financial transaction tax now is “simply madness”, says PM Cameron

Friday, January 27th 2012 - 10:55 UTC

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Britain is part of the EU not by default but by choice, according to the UK Prime Minister

United Kingdom’s Prime Minister David Cameron urged the European Union to take a “bold and decisive action” to curb the economic crisis hovering over the Euro Zone and also described the plan for a financial transaction tax as “simply madness”.

According to PM Cameron the European Central Bank should be “doing more” to contain the recession and stressed the seriousness of the current crisis situation.

“We meet today at a perilous moment for economies right across Europe. Growth has stalled. Unemployment is rising. The prospect of Europe getting left behind is all too apparent,” he said during his speech at the World Economic Forum (WEF) in the Swiss resort of Davos.

“While China grows at 8%, India at 7% and Africa at 5.5%, the European Commission forecasts the EU will grow by just 0.6% in the whole of 2012 – and even that is assuming the problems in the Euro zone get better not worse, “ he remarked.

Likewise he stressed the necessity to access the economic recession in a brave manner.

“This is a time for boldness not caution. Boldness in what we do nationally – and together as a continent,” he said.

Cameron also said the European Union's plan for a financial transaction tax was “simply madness,” adding “even to be considering this at a time when we are struggling to get our economies growing is quite simply madness.”

“Of course, the most urgent question of all facing Europe right now is how to deal with Euro zone crisis. And this is where I believe Europe needs to be boldest of all”.

Cameron also insisted that the veto he used before Christmas – when he refused to sign the new EU treaty – was not a sign that Britain wanted to leave Europe. “Let me tell you nothing could be further from the truth. Britain is part of the EU, not by default but by choice”.

The Prime Minister infuriated other European Union members last month and sparked speculation about Britain's place in the group it joined in 1973 by blocking an EU treaty change and forcing Euro zone countries to negotiate a fiscal accord outside the Union.

All EU countries other than Britain now plan to sign a treaty outside the full EU framework at a summit on January 30.