Letter: German invasion

Sir: I am very surprised at Ken Livingstone's claim that Oskar Lafontaine has made no proposal for tax "harmonisation" in the EU ("Charm is not enough - now Blair must take on Murdoch", 17 December). I believe he has quite clearly expressed these sentiments and Gerhard Schroder has stated that it is also German government policy.

Mr Livingstone also lauded the creation of a European currency bloc large enough to resist the attacks of speculators which have in the past sabotaged the plans of Labour governments. How much policy latitude does Mr Livingstone imagine future Labour governments would have when monetary policy, fiscal policy, employment policy, and social policy are determined by the EU?

A "government" in such circumstances would not be a real government at all and would have no chance of carrying through policies, whether of the right or left, old Labour or new Labour, against the power of the real government in Brussels, Frankfurt, and Berlin.

Lastly, when Mr Livingstone predicts a flood of jobs from Britain if we do not join EMU I must ask why it is that overseas investments in the UK rose by 38 per cent in 1997. Does this suggest that the UK is becoming unattractive as a place for investment because of its decision not, so far, to enter EMU? I think not.

PETER GARDNER

Oxford