News
BackOn 4 February 2014, a debate on the Financial Transaction Tax (FTT), which had been organised at short notice, took place in the plenum of the European Parliament in Strasbourg. Algirdas Šemeta, Commissioner for Taxation and Customs Union, and Evangelos Venizelos, the Greek Finance Minister, reinforced the possibility of reaching an agreement before the European elections in May 2014. An EU-wide coalition of trade unions, NGOs and political parties, in which AK & ÖGB played a crucial role, has been fighting for the Financial Transaction Tax for a number of years. The implementation of the FTT as soon as possible would be a great success for this campaign!
Current political developments
To recap: in 2013, 11 EU Member States decided to implement the proposal of the Commission on the introduction of an FTT by 2014 within the scope of a so-called “enhanced cooperation”. These 11 countries are: Germany, France, Spain, Portugal, Greece, Belgium, Austria, Italy, Estonia, Slovenia and Slovakia.
Last week, Germany’s and France’s Economics and Finance Ministers met for bilateral discussions, debating among other the Financial Transaction Tax. During the past weeks and months, France increasingly bowed to the heavy pressure of the financial industry and publicly rejected the implementation of a broad FTT. In contrast, Germany emphasised the necessity of implementing a comprehensive tax on several occasions.
Last week’s meeting resulted in a generally formulated joint declaration to start working on a compromise for the FTT as soon as possible.
Debate in the European Parliament: Venizelos and Šemeta
Evangelos Venizelos, the Greek Finance Minister and current President of the EU Council of Economic and Finance Ministers emphasised that the implementation of the FTT before the elections within the scope of the Greek Presidency could send an important message to the citizens of the EU Member States. The EU had learned its lesson from the crisis and was prepared to follow a new path. It was vital for the financial sector to contribute its fair share to the costs of the crisis.
Algirdas Šemeta, Commissioner for Taxation and Customs Union, was annoyed that some Member States bowed to the pressure of the finance lobby, publicly voicing their doubts about the tax even though in 2013 they had promised to implement the FTT. However, in general there was broad consensus on the FTT. Last year for example, a broad majority in the Parliament had adopted the report by Anni Podimata (S&D) on the importance of the tax in question.
Šemeta made it clear that it might be possible to adopt a compromise even before the European elections. If further content-related concessions were required, it could also be considered to exempt certain financial products and to implement the tax gradually.
Anni Podimata against Werner Langen
Werner Langen, MEP of the European People’s Party (EPP) voiced concerns that the FTT might result in competitive distortions within the EU. That is why he would prefer a stock exchange tax where in his opinion the inclusion of Great Britain was also secured.
Anni Podimata (S&D), Parliament's rapporteur for the FTT, replied that only a broad model of a Financial Transaction Tax would bring the so urgently needed regulation of speculative financial transactions and substantial revenues. Insofar, she regards the current developments as particularly disappointing. The danger of any watering down had to be rigorously fought against and one should not yield an inch to the heavy pressure of the financial industry!
Interim result & outlook
A broad European alliance of trade unions, NGOs and political parties, led by AK & ÖGB has been fighting for the Financial Transaction Tax for years. Not least because of this year-long pressure, the debate has been gaining momentum again. An agreement as soon as possible on the implementation of a broad FTT before the European elections in May 2014 would be most welcome!
However, one has to wait and see what kind of compromise the 11 EU states of the “enhanced cooperation” will actually adopt. The annual meeting of French and German governments, with the intention to draw up a compromise proposal, takes place on 19 February 2014.
From the point of view of our Europe-wide FTT coalition it is definitely positive that the policy-makers once again publicly confess their support for the Financial Transaction Tax. AK and ÖGB will not rest until the European FTT has become reality! Support our petition under www.financialtransactiontax.eu!
Further information:
Speech by Algirdas Šemeta im EP
To recap: in 2013, 11 EU Member States decided to implement the proposal of the Commission on the introduction of an FTT by 2014 within the scope of a so-called “enhanced cooperation”. These 11 countries are: Germany, France, Spain, Portugal, Greece, Belgium, Austria, Italy, Estonia, Slovenia and Slovakia.
Last week, Germany’s and France’s Economics and Finance Ministers met for bilateral discussions, debating among other the Financial Transaction Tax. During the past weeks and months, France increasingly bowed to the heavy pressure of the financial industry and publicly rejected the implementation of a broad FTT. In contrast, Germany emphasised the necessity of implementing a comprehensive tax on several occasions.
Last week’s meeting resulted in a generally formulated joint declaration to start working on a compromise for the FTT as soon as possible.
Debate in the European Parliament: Venizelos and Šemeta
Evangelos Venizelos, the Greek Finance Minister and current President of the EU Council of Economic and Finance Ministers emphasised that the implementation of the FTT before the elections within the scope of the Greek Presidency could send an important message to the citizens of the EU Member States. The EU had learned its lesson from the crisis and was prepared to follow a new path. It was vital for the financial sector to contribute its fair share to the costs of the crisis.
Algirdas Šemeta, Commissioner for Taxation and Customs Union, was annoyed that some Member States bowed to the pressure of the finance lobby, publicly voicing their doubts about the tax even though in 2013 they had promised to implement the FTT. However, in general there was broad consensus on the FTT. Last year for example, a broad majority in the Parliament had adopted the report by Anni Podimata (S&D) on the importance of the tax in question.
Šemeta made it clear that it might be possible to adopt a compromise even before the European elections. If further content-related concessions were required, it could also be considered to exempt certain financial products and to implement the tax gradually.
Anni Podimata against Werner Langen
Werner Langen, MEP of the European People’s Party (EPP) voiced concerns that the FTT might result in competitive distortions within the EU. That is why he would prefer a stock exchange tax where in his opinion the inclusion of Great Britain was also secured.
Anni Podimata (S&D), Parliament's rapporteur for the FTT, replied that only a broad model of a Financial Transaction Tax would bring the so urgently needed regulation of speculative financial transactions and substantial revenues. Insofar, she regards the current developments as particularly disappointing. The danger of any watering down had to be rigorously fought against and one should not yield an inch to the heavy pressure of the financial industry!
Interim result & outlook
A broad European alliance of trade unions, NGOs and political parties, led by AK & ÖGB has been fighting for the Financial Transaction Tax for years. Not least because of this year-long pressure, the debate has been gaining momentum again. An agreement as soon as possible on the implementation of a broad FTT before the European elections in May 2014 would be most welcome!
However, one has to wait and see what kind of compromise the 11 EU states of the “enhanced cooperation” will actually adopt. The annual meeting of French and German governments, with the intention to draw up a compromise proposal, takes place on 19 February 2014.
From the point of view of our Europe-wide FTT coalition it is definitely positive that the policy-makers once again publicly confess their support for the Financial Transaction Tax. AK and ÖGB will not rest until the European FTT has become reality! Support our petition under www.financialtransactiontax.eu!
Further information:
Speech by Algirdas Šemeta im EP