While our Remainers insist that EU freedom of movement is wonderful for everyone, there are countries in the EU that are suffering because of it.

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It never fails to amaze me that our blinkered Remainers can't grasp that, with the UK having net immigration running into the hundreds of thousands per year, for every worker we take into the country from abroad, that means there is one fewer worker in the country they came from.

And that is having a big effect on the countries affected.

CNBC reported on this a couple of days ago, saying that there is a brain drain of young people from Central and Eastern European countries (CEE), which is shrinking their workforces and damaging their future economic prosperity.

As a result Poland has just scrapped income tax for about two million of its young workers and Croatia is about to do the same sort of thing at the start of next year.

According to the article, the countries that these young people from the CEE countries gravitate to are Sweden, Ireland, Estonia and Denmark, with Germany and the UK being the top two.

And it also said the in 2017 nearly 17 million people moved to another EU country.

Now, when a country reduces taxes for these young people, it means that either the older people pay more, or services are reduced or government debt goes up. Or a combination of all three.

It will also encourage the employers to take another look at their wage rates and maybe lower them until the state ends up paying young people a state wage just to be there.

But further, unless they can reduce this outflow of people, it also means that the affected state's GDP and GNI falls, its VAT take reduces and any Common External Tariff they collect goes down as well, with the result being that state gives less to the central EU coffers.

And who will train those youngsters if they're just going to leave?

And the countries the young people go to, will see an increase in GDP, GNI, the VAT take and Common External Tariff income so will pay more. And it will become a lot more over time, because they will in effect have to pay for the privilege of having those workers.

The obvious end result is an ever increasing gap between the EU member state net contributors and the net receivers. A system of permanent givers and permanent takers – how sustainable is that? Especially as the whole idea of the EU is to achieve EU wide parity.

And we could see those net recipients suffering from increasing debt to GDP ratios that keep them outside of EU rules. It could lead to some of them on the verge of being forced out of the EU, so endangering the whole Eurozone and EU project.

Therefore, at some time or other I reckon that the EU Commission will be looking for ways to exercise more control over EU member state domestic affairs, such as taxes and wages and where people work and where firms start up new enterprises and the like.

And we've already heard much of this from the likes of Juncker, Verhofstadt, Tusk and Ursula von der Leyen.

In order to keep the current EU together and realise their expansionist dreams, the Eurocrats would have to run ever more of a command economy.

They might have to find ways of encouraging professionals, like doctors, nurses and vets for example, to stay in certain areas, so as to even out the availability of healthcare etc.

While the poorer and less skilled workers will have to keep moving around the bloc as jobs come and go.

The EU, which aims for EU wide parity in all things, is too big to do anything other than increase its powers over its member states to achieve that parity. Or see some states become almost derelict.

And the best place for the UK is well away from its grasping control. We must Brexit.

Sources:

https://www.cnbc.com/2019/08/05/poland-and-croatia-propose-scrapping-income-taxes-for-young-people.html

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