News
BackOn Monday, 5 May 2014, 10 EU Member States agreed to implement a Financial Transaction Tax on shares and a small number of derivatives from 2016 at the earliest. However, the adopted model makes a mockery of the fundamental idea of a Financial Transaction Tax. Highly speculative financial products are being left out whilst small investors are asked to pay up.
Background
Brussels. In 2011, the European Commission launched a legislative initiative on implementing a Financial Transaction Tax (FTT) in the EU. Due to fierce pressure, in particular by Great Britain and the financial industry, the legislative proposal was not put through, as a result of which eleven EU Member States decided to implement the FTT themselves.
These eleven countries are: Germany, France, Spain, Italy, Austria, Greece, Portugal, Belgium, Estonia, Slovenia and Slovakia. Originally, these countries had committed themselves to implement the FTT by 1 January 2014.
Radical watering down
Meanwhile, months have passed and the FTT still has not been implemented. This week, yet another attempt has been made to reach consensus between the eleven pioneer countries. The basic commitment of a large number of EU states, among them Austria, in support of the FTT is highly welcome. However, the actual agreement is more than feeble; apart from that, Slovenia has not agreed to the compromise.
For example, the Financial Transaction Tax shall only come into effect from 2016 and apply only to normal stock trading and a small number of derivatives respectively, whilst sovereign bonds, pension funds and the majority of derivatives will be exempt.
Massive influence by the financial lobby!
Great Britain and the financial industry vigorously oppose the introduction of the Financial Transaction Tax, even though it might help to improve the regulation of the financial markets and would curb risky speculative transactions. It became apparent, in particular during the economic crisis, that an inflated financial sector can have disastrous overall economic consequences.
As recently confirmed in a study by Corporate Europe Observatory (CEO), AK & ÖGB, the financial lobby has an enormous political influence at European level. Having more than 1700 lobbyists and an annual budget of about EUR 120 million at its disposal, it continuously exerts massive pressure on EU policy makers. This excessive lobbying influence by the financial industry prevents urgently needed financial market regulations.
Stand up to the pressure of the financial lobby!
For years, AK & ÖGB have been fighting for a Financial Transaction Tax on the broadest possible basis in a Europe-wide alliance made up of trade unions, political parties and non-governmental organisations (NGO). Citizens can still contact their responsible politicians under www.financialtransactiontax.eu and ask them to implement the FTT immediately without any compromise!
Further information:
www.financialtransactiontax.eu
Campaign for lobby transparency at EU level
Financial Lobby Study
Brussels. In 2011, the European Commission launched a legislative initiative on implementing a Financial Transaction Tax (FTT) in the EU. Due to fierce pressure, in particular by Great Britain and the financial industry, the legislative proposal was not put through, as a result of which eleven EU Member States decided to implement the FTT themselves.
These eleven countries are: Germany, France, Spain, Italy, Austria, Greece, Portugal, Belgium, Estonia, Slovenia and Slovakia. Originally, these countries had committed themselves to implement the FTT by 1 January 2014.
Radical watering down
Meanwhile, months have passed and the FTT still has not been implemented. This week, yet another attempt has been made to reach consensus between the eleven pioneer countries. The basic commitment of a large number of EU states, among them Austria, in support of the FTT is highly welcome. However, the actual agreement is more than feeble; apart from that, Slovenia has not agreed to the compromise.
For example, the Financial Transaction Tax shall only come into effect from 2016 and apply only to normal stock trading and a small number of derivatives respectively, whilst sovereign bonds, pension funds and the majority of derivatives will be exempt.
Massive influence by the financial lobby!
Great Britain and the financial industry vigorously oppose the introduction of the Financial Transaction Tax, even though it might help to improve the regulation of the financial markets and would curb risky speculative transactions. It became apparent, in particular during the economic crisis, that an inflated financial sector can have disastrous overall economic consequences.
As recently confirmed in a study by Corporate Europe Observatory (CEO), AK & ÖGB, the financial lobby has an enormous political influence at European level. Having more than 1700 lobbyists and an annual budget of about EUR 120 million at its disposal, it continuously exerts massive pressure on EU policy makers. This excessive lobbying influence by the financial industry prevents urgently needed financial market regulations.
Stand up to the pressure of the financial lobby!
For years, AK & ÖGB have been fighting for a Financial Transaction Tax on the broadest possible basis in a Europe-wide alliance made up of trade unions, political parties and non-governmental organisations (NGO). Citizens can still contact their responsible politicians under www.financialtransactiontax.eu and ask them to implement the FTT immediately without any compromise!
Further information:
www.financialtransactiontax.eu
Campaign for lobby transparency at EU level
Financial Lobby Study