In its report, the Commission reaches the conclusion that the Financial Transaction Tax, which is favoured by many non-governmental organisations, is not as well suited as the envisaged levy. The Commission intends to use the total assets as the assessment basis for the bank levy. If one would follow the Swedish model, the EU Member States could expect about 13 billion Euro in total per year. Compared to the damage caused, this might only be a drop in the ocean; it should, however, be enough to pay for the postage of sending subsidy requirements to the national Ministries of Finance, come the next financial crisis.

Concerning the discussion on the Financial Transaction Tax, the Commission refers to the analysis of the Austrian Institute of Economic Research (WIFO): however, the Commission might have made an interpretation and/or calculation error: it has established a volume of only 20 billion Euro for die EU, whilst WIFO, including all derivative transactions, calculates a tax volume of 289 billion Euro for die European Union.

Of course, the Commission fears with regard to a Financial Transaction Tax, that banks would migrate to countries where such a tax is not imposed. It also comes to the conclusion that such a tax could fuel speculation. In contrast, a bank levy would hardly result in migration. The Commission, however, fails to explain how it has reached these different conclusions. In any case, Europe would also be able to introduce the bank levy on its own.

The Paper, which has now been published by the Commission, will probably be discussed during the informal ECOFIN Council, which takes place from 15th to 17th April. It might serve the EU as a basis for the G20 Summit in June.

Apparently the International Monetary Fund seems to support the opinion of the European Commission and prefer a bank levy to a financial transaction tax.