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BackThe financial sector regulations do not go far enough and pose a threat for the working population. That was the concurring opinion at a seminar on the introduction of the Financial Transaction Tax in Brussels. The campaign “Regulate Global Finance Now!” whose members also include the Austrian Federal Chamber of Labour and the Austrian Trade Union Federation organised the event.
The Seminar was attended by high-calibre guests: AFL-CIO President Richard Trumka, USA, the economist Prof. Ross Buckley from Australia, the former Governor of the Reserve Bank of India (RBI) Y Venugopal Reddy from India, the former Minister for Economic Policy Coordination of Ecuador Pedro Páez, the Co-President of the Greens in the European Parliament Philippe Lamberts and Poul Nyrup Rasmussen, President of the Party of European Socialists, all contributed to the discussion. Austria was represented by State Secretary at the Ministry of Finance Andreas Schieder.
The tenor of the speakers could not have been clearer: the financial sector bears the main responsibility for the most serious global economic crisis in the past 80 years. Financial services in general and hedge funds in particular must be better regulated. It was urgently required to stabilise prices in the property sector in order to avoid a new speculation bubble. A tax on financial transactions, in the region of 0.05 percent for example, would affect financial service providers, some of whom would engage in speculation business worth billions every second.
Richard Trumka informed the audience, that the USA had adopted a so-called Wall Street Reform and a Consumer Protection Act, but that there was still no legislation for example for hedge funds or private equity capital. Rasmussen criticised the current predominant stance of the financial sector and complained that society would constantly worry what financial institutes would come up with next. Banks should return to their core business (“boring banking”). It would be possible to introduce a Financial Transaction Tax in the European Union. In contrast to the opinion of some scaremongers, there would be no risk of companies leaving the EU, as they would then have to forego the comparative benefits the EU has to offer. Apart from that, the EU would be the largest economy in the world and should set a good example. Philippe Lamberts, the Co-President of the Greens in the European Parliament, also emphasised the high investment requirements of the coming years, which are, among others, needed to tackle climate change.
State Secretary at the Ministry of Finance, Andreas Schieder pointed out that Austria would promote the idea of a Financial Transaction Tax. He highlighted the fact that financial transactions had reached irrational heights: the volume of exchange transactions was 70 times higher than the volume of the real economy with regard to trade or services.
Damon Silvers, Member of the Congressional Oversight Panel, which was set up by the US Congress in the aftermath of the crisis, informed the guests about a letter, which severely criticises the current orientation towards short-term targets and which also demands a Financial Transaction Tax. The document was among others signed by Warren E. Buffet and John C. Whitehead, the former Chairman of Goldman Sachs.
More detailed information on the platform “Regulate Global Finance Now” is available under
europeansforfinancialreform.org
The tenor of the speakers could not have been clearer: the financial sector bears the main responsibility for the most serious global economic crisis in the past 80 years. Financial services in general and hedge funds in particular must be better regulated. It was urgently required to stabilise prices in the property sector in order to avoid a new speculation bubble. A tax on financial transactions, in the region of 0.05 percent for example, would affect financial service providers, some of whom would engage in speculation business worth billions every second.
Richard Trumka informed the audience, that the USA had adopted a so-called Wall Street Reform and a Consumer Protection Act, but that there was still no legislation for example for hedge funds or private equity capital. Rasmussen criticised the current predominant stance of the financial sector and complained that society would constantly worry what financial institutes would come up with next. Banks should return to their core business (“boring banking”). It would be possible to introduce a Financial Transaction Tax in the European Union. In contrast to the opinion of some scaremongers, there would be no risk of companies leaving the EU, as they would then have to forego the comparative benefits the EU has to offer. Apart from that, the EU would be the largest economy in the world and should set a good example. Philippe Lamberts, the Co-President of the Greens in the European Parliament, also emphasised the high investment requirements of the coming years, which are, among others, needed to tackle climate change.
State Secretary at the Ministry of Finance, Andreas Schieder pointed out that Austria would promote the idea of a Financial Transaction Tax. He highlighted the fact that financial transactions had reached irrational heights: the volume of exchange transactions was 70 times higher than the volume of the real economy with regard to trade or services.
Damon Silvers, Member of the Congressional Oversight Panel, which was set up by the US Congress in the aftermath of the crisis, informed the guests about a letter, which severely criticises the current orientation towards short-term targets and which also demands a Financial Transaction Tax. The document was among others signed by Warren E. Buffet and John C. Whitehead, the former Chairman of Goldman Sachs.
More detailed information on the platform “Regulate Global Finance Now” is available under
europeansforfinancialreform.org