David Blackburn

A battle with the EU may be closer than you think

Euroscepticism is David Cameron and Gene Hunt’s sole shared attribute. But, bequeathed a poisoned chalice at home, the EU is not a future Tory government’s immediate priority. Set-piece battles over rebates, defence procurement and the CAP can be avoided for a time, but skirmishes will be a regular occurrence. And some of these will be bloodbaths.

The first test comes in June, when EU finance ministers will consider hedge fund and private-equity firm regulation. There is no more contentious a topic. Recent European regulatory initiatives have impeded British financial services to the extent that even Brown and Miliband have taken note. It may be tempting to perceive a grand conspiracy against Britain, but the more likely explanation is that there is a profound disagreement over using tax as a regulation mechanism.
 
True to history, British interests are outnumbered: interventionism is in vogue.

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