Compromise reached on 'Tobin tax' in the European parliament

Compromise reached on  Tobin tax  in the European parliament

S&D Euro MP Anni Podimata has won a cross-party majority in the European Parliament's economic and monetary committee for the introduction of a 0.1% tax on stocks and bond trades and 0.01% on derivatives  in 11 countries in the European Union* from January 2014.

The Greek Socialist Anni Podimata welcomed the deal:

"This has been a long and complicated negotiation.  Despite intense lobbying from the financial sector, we managed to defend an ambitious proposal covering all financial institutions, all financial products and all financial markets.

"The European Parliament has been leading the campaign for the introduction of a financial tax (FTT) from the very beginning. Today's vote in the economic and monetary committee proved that we remain consistent and coherent in defending a tax with a wide scope, covering stocks, bonds and derivatives, and addressing specific concerns.

"To be efficient and successful, the FTT has to maintain its double dividend – assuring fair taxation of the financial sector and discouraging the most speculative transactions. Our suggestion of combining the residence, issuance and ownership principles will prevent tax evasion and reduce the risk of relocation.

"At the Parliament's plenary session in July we will send a strong message to the Council that there are no excuses for delaying the implementation of the financial transaction tax. We want an FTT in place before the European elections in May 2014.

Said S&D Group president Hannes Swoboda:

"The EU finance ministers must now show their capacity to decide and act quickly. The large majority of our citizens expect our governments to deliver. They cannot afford to disappoint so many Europeans.

"The financial sector must contribute to the costs of the crisis. It is a matter of social justice."

*The member states proceeding with the financial transaction tax through an enhanced co-operation are: Germany, France, Italy, Estonia, Spain, Greece, Slovakia, Belgium, Austria, Portugal and Slovenia.