30 Sep 2011

SOLIDAR welcomes the Financial Transaction Tax proposal, now it is up to the EU Council

On Wednesday, the President of the European Commission (EC), Jose Manuel Barroso, presented the long awaited legislative proposal for a Council Directive on the Financial Transaction Tax during his State of the Union speech to MEPs. It represents a turning point for our campaign and in the history of all campaigns on this issue for years. Now, not only the Parliament, but also the Commission, is asking for the urgent introduction of a tax on financial transactions to ensure a fair contribution by financial institutions to the crisis, reduce risky transactions, and provide the EU with a single sample design to avoid the fragmentation of the financial sector taxation inside the EU.

The Commission sees the tax applying to bonds and shares and derivatives thereof - albeit with differentiating tax rates, less (0,01%) for the latter (more destructive financial products) than the former (0,1%). This not only encourages a trading preference with more complicated products over more conventional and simple ones, but it is also why a revenue of ? 50 billion is expected - much less than initially estimated by economists.

At this stage it is up to the EU Council to take all the demands and proposals and make the best out of it. We will monitor the EU Council in October and the G-20 meeting at the beginning of November to ensure that the necessary steps are taken to accept the initiative. Read also ETUC Secretary General and co-campaigner Ms Bernadette Ségol press statement. Read more about the campaign here

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