THE EURO CRISIS - WHY WAS THE PRIME MINISTER SO KEEN TO DEFEND THE CITY OF LONDON

THE PRIME MINISTER HAS INCREASED HIS POPULARLY IN THE COUNTRY AND THE FINANCIAL SECTOR SINCE HIS USE OF THE VETO DURING THE EURO CRISIS.

The city of London has carved out for itself privilege after privilege, to ensure that the rules governing the rest of Britain stop at the city borders. The Statute of William and Mary from 1690, for example, "confirming the privileges of the Corporation", states:

All the charters, grants,letter patents, commissions touching or concerning any of their liberties or franchises, or the liberties, privileges, franchises, immunities, lands, tenements and hereditaments, rights, titles, or estates of the mayor and commonality and citizens of the City of London, made or granted to any person or persons whatsoever...be and are hereby declared and adjudged null and void to all intents.

Some of the laws made in Westminster do apply to the corporation, but many acts of Parliament specifically exempt it, either fully or in part. Hence the City is connected to the British nation state but remains a constitutional elsewhere. In this the City resembles Jersey or the Cayman Islands, the offshore jurisdictions that are its satellites. For skittish global capital, this matters. Any challenge to the City faces the mystique of history and the extravagant skills and powers of the many servants of finance. This globe-encompassing futuristic financial services centre, whose influence reaches silently into people's homes from Baltimore via Birmingham to Borneo, is founded upon an ancient constitutional platform that is as impregnable as it is unique.

My contention is that a very large proportion of the worlds wealth is sheltered from taxation by the City. It is unique because it is legal. That is why most other "offshore" tax havens are registered with the City of London. The proposals to have "transaction taxes" and to have proper and open accountancy practises to bring the Euro area into some order would require Britain to repeal the 1690 Act and apply those practises in Britain. The City of London would then be chased by the HMRC as they would not have legal immunity. As Cameron and Osborne have their fortunes registered in the Cayman Islands, I cannot see this ever happening. All the other cabinet members are millionaires and most probably have similar arrangements.

We have 73 billionaires registered in Britain not paying tax. We have 45,000 millionaires and only 6,000 of them pay tax. The run on the Greek Banks was caused by the companies in Greece registering "offshore", they and other wealthy individuals withdrew their money and sent it "offshore". 

98 of the FTSE 100 are registered "offshore". In Spain 80% of their companies are registered "offshore". The share holders of other companies are registered "offshore". It goes on and on. All of these vested interests worth billions will not give in to Europe easily. The idea that it will be good for jobs is farcical. Britain may not be in the Euro Zone but we certainly caused the crisis. Removing minimum employment rights in Britain will not improve the well-being of you average citizen.

Keith C