The single market & competition policy

The prospect of a two-tier Europe, with Britain outside the core, causes alarm in Downing Street. Joschka Fischer's vision of a European federation - with a group of more ambitious states forming its vanguard - is the latest such proposition, albeit one for the long-term. But does Tony Blair have much to fear?

Europe's citizens, generally speaking, do not want their taxes set by Brussels. Taxation and representation still go hand in hand. So it is safe to assume that so long as people continue to look to their national governments to represent their interests (and turn out to vote for their national politicians in greater numbers than for MEPs), they will reject the notion of taxation policies being decided at European Union level.

Commission President Romano Prodi has promised a fundamental review of the EU's priorities. He should encourage the Commission to think more about service industries.

It is easy to forget that the Eurosceptical mood of many EU countries is a recent phenomenon. In the late 1980s, when the EU's prime task was the creation of a single market, its popularity grew in every member-state.

Crime is becoming increasingly international, and it is a big business. A recent United Nations report estimates that the global turnover of criminal organisations amounts to some £1,000 billion a year, considerably larger than the gross domestic product of Britain.

The government is missing a trick by failing to encourage the Bank of England to play an active part in ensuring Britain's economic convergence with the euro-zone.
The prime minister has repeatedly said joining EMU requires the UK's "sustainable convergence with the economies of the single currency". This doesn't mean exchange-rate...

During Oskar Lafontaine's brief reign as German finance minister, Europe seemed to veer towards much greater centralisation of economic policy-making. He argued that governments needed to forge a more centralised system of economic policy-making.

The EMU project is set for success in the short term, despite the financial crisis, but in the long run its prosperity depends on greater co-ordination between member states to undertake essential structural reform.