Wednesday, 1 June 2011

Government or no government, nothing comes easy in Europe these days

Finnish government negotiations are in limbo as Social Democrats and Left Alliance left (or were asked to leave, debending on which side you ask) the negotiating table over tax disputes. National Coalition Party,which narrowly edged out Social Democrats and anti-EU True Finns to become the largest party in parliament for the first time, has so far been leading the negotiations and will continue to try to do so. The last straw appears to have been a potential VAT tax rate hike that National Coalition insists on and left-wing parties oppose. The sudden turn of events also leaves open the possibility for a left-leaning anti-EU government, which would also turn capital gains tax progressive.

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