Simon Tilford, of the CER, believes the best way to combat avoidance and evasion is to introduce harmonised tax rates and tax bases (what is liable for tax), but is under no illusions that this will happen.
Spain and Italy "need prices to rise less rapidly than in Germany to rebuild competitiveness, but they need a measure of inflation to ensure debt sustainability," says Simon Tilford, of the CER. "Something has to give."
Critics of the government in Berlin say that Germany and its exporters should do more because they are the big beneficiaries of monetary union. If the single currency disintegrated, then the value of a new German currency would soar on the foreign exchanges, hitting German exports, Simon Tilford of the CER, has argued.
The CER commission on the UK and the single market