Huge step forward towards a financial transaction tax

10 October 2012
When European finance ministers met in Brussel on October 9, eleven countries agreed to implement a financial transaction tax. Even more countries might join in.

The European Commission in 2011 proposed a directive aimed at introducing an EU-wide financial transaction tax (FTT), but at that time there was insufficient support for the proposal.

At a meeting in Brussels on October 9, the Council was informed of developments regarding the possible introduction of FTT.

The 11 countries pro FTT are

  • France
  • Italy
  • Spain
  • Germany
  • Austria
  • Belgium
  • Estonia
  • Greece
  • Portugal
  • Slovakia
  • Slovenia

Read the full press release from the European Council.

As there is now political will to impose the FTT, the next steps to introduce the the tax will be:

  1. European Commission submits a FTT proposal likely to be based on the  existing proposal of 0.1% on stock and bonds and 0.01% on derivatives
  2. EU parliament gives its assent (EP has already expressed its support its support for an EU FTT twice)
  3. European Council’s qualified majority vote to go ahead with the enhanced procedure

The timetable is uncertain, it might be done by the end of the year, but no doubt there will be remaining fights over the design of the tax and allocation of the revenues.

 

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