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BackThe plenary session of the European Parliament in Strasbourg saw a much-noticed showdown this week. The MEPs voted on whether the EU should play a pioneering role with regard to introducing the Financial Transaction Tax (FTT). What lies behind this is the stubborn resistance of important international economic partners of the EU and the European Commission against the introduction of such a tax on speculations. This in turn served the opponents of FTT as a welcome excuse to put the project on the shelf. The massive mobilisation of AK and ÖGB together with national and international partners has helped to turn a close vote round.
360 yes votes to 299 no votes. That was the tight result of the vote on the decisive passage in the report of the Greek MEP Anni Podimata (S&D) on “Innovative financing at a global and European level”. The highly controversial half sentence, which won cross-party support by the parliamentarians, says that the EU should go ahead in introducing the Financial Transaction Tax, even if no international agreement is in sight.
The opponents of the Financial Transaction Tax had for years used the bogus argument that the FTT could only be introduced at a global level, as EU finance would otherwise lose its international “competitiveness”. If the EU would go it alone in introducing the FTT, all businesses would simply migrate to other world regions - so the claim. To this day there is nothing to substantiate it; however, there are examples that the introduction of such a tax, even by a single country, can work, as demonstrated by Great Britain.
So far, no agreement in respect of an international FTT could be reached at the level of the G20 states. The resistance of many international partners of the EU is just too great. Waiting for international agreement would mean burying the project. However, the tax on speculations, in particular for the EU, is more important than ever. The costs of the financial and economic crisis, which was triggered by the financial industry, are a burden on the budgets of the Member States. Instead of clamping down on speculation and the disproportionate influence of the financial world and to make the causers of the crisis foot the bill, the Commission - with the support of influential Member States - now wants to unpack its neoliberal ancient recipes and introduce cuts at the expense of the working population. Budget cuts, intervening in national wage policies, increasing the pension age, “flexibilisation” of the labour markets and shifting wage negotiations to the corporate level shall ensure that “the financial markets” will once again have confidence in politics.
Against this background, the voting behaviour of the MEPs in favour of a European Financial Transaction Tax has to be seen as a clear and groundbreaking political message: against political impotence towards the financial industry and for a courageous European policy, which uses Europe’s significance as a social economic power to act as a model also at international level. There is no need to wait for others to make decisions; it is far better to prove decision-making ability and then to convince others.
The message of the Parliament to the European Commission is of equal importance. For over a year, the Lithuanian Tax Commissioner Šemeta has been dawdling and dragging his feet to submit a proposal of the Commission on introducing the FTT. The negative climax was Šemeta’s reaction to the vote in the European Parliament. Issuing a press release, he proclaimed that he was still opposed to a European Financial Transaction Tax - making a mockery of the European Parliament and of the European citizens.
In an online campaign, initiated by AK and ÖGB and supported by national and European allies, the latter had given massive Europe-wide support to a European FTT. In only one week, over 500,000 email petitions had been sent to the 736 MEPs; together with the MEPs they helped to achieve a major stage win. At governmental level, the Austrian Federal Chancellor Faymann and the German Chancellor Merkel supported the project. From now on, the European citizens will focus all their attention on the Commission.
Further information:
Press release of the European Parliament
Link to the final text of the Podimata Report
That’s how they voted: campaign site of AK and ÖGB www.financialtransactiontax.eu
Press release of the EU Tax Commissioner Algirdas Šemeta after the plenary vote
The opponents of the Financial Transaction Tax had for years used the bogus argument that the FTT could only be introduced at a global level, as EU finance would otherwise lose its international “competitiveness”. If the EU would go it alone in introducing the FTT, all businesses would simply migrate to other world regions - so the claim. To this day there is nothing to substantiate it; however, there are examples that the introduction of such a tax, even by a single country, can work, as demonstrated by Great Britain.
So far, no agreement in respect of an international FTT could be reached at the level of the G20 states. The resistance of many international partners of the EU is just too great. Waiting for international agreement would mean burying the project. However, the tax on speculations, in particular for the EU, is more important than ever. The costs of the financial and economic crisis, which was triggered by the financial industry, are a burden on the budgets of the Member States. Instead of clamping down on speculation and the disproportionate influence of the financial world and to make the causers of the crisis foot the bill, the Commission - with the support of influential Member States - now wants to unpack its neoliberal ancient recipes and introduce cuts at the expense of the working population. Budget cuts, intervening in national wage policies, increasing the pension age, “flexibilisation” of the labour markets and shifting wage negotiations to the corporate level shall ensure that “the financial markets” will once again have confidence in politics.
Against this background, the voting behaviour of the MEPs in favour of a European Financial Transaction Tax has to be seen as a clear and groundbreaking political message: against political impotence towards the financial industry and for a courageous European policy, which uses Europe’s significance as a social economic power to act as a model also at international level. There is no need to wait for others to make decisions; it is far better to prove decision-making ability and then to convince others.
The message of the Parliament to the European Commission is of equal importance. For over a year, the Lithuanian Tax Commissioner Šemeta has been dawdling and dragging his feet to submit a proposal of the Commission on introducing the FTT. The negative climax was Šemeta’s reaction to the vote in the European Parliament. Issuing a press release, he proclaimed that he was still opposed to a European Financial Transaction Tax - making a mockery of the European Parliament and of the European citizens.
In an online campaign, initiated by AK and ÖGB and supported by national and European allies, the latter had given massive Europe-wide support to a European FTT. In only one week, over 500,000 email petitions had been sent to the 736 MEPs; together with the MEPs they helped to achieve a major stage win. At governmental level, the Austrian Federal Chancellor Faymann and the German Chancellor Merkel supported the project. From now on, the European citizens will focus all their attention on the Commission.
Further information:
Press release of the European Parliament
Link to the final text of the Podimata Report
That’s how they voted: campaign site of AK and ÖGB www.financialtransactiontax.eu
Press release of the EU Tax Commissioner Algirdas Šemeta after the plenary vote