Strasbourg, 18/05/2010 (Agence Europe) - Speaking to press on Tuesday 18 May, the leaders of the political groups in the European Parliament agreed on the need for drastic measures to stabilise states' budgets, curtail the crisis in the single currency and re-boot growth. All backed taxes on financial transactions, including Frenchman Joseph Daul, who reluctantly acknowledged that this issue was yet to be settled within his EPP Group.
“With no revenue for stabilising budgets, ultimately there will be no growth,” summed up German MEP Martin Schulz who leads the S&D Group, speaking of a 0.05% levy on all financial transactions which would bring in over €10 billion. Schulz also argued for a European rating agency to be set up and criticised UK reservations on state interference in regulating financial markets. “The United Kingdom has to realise that a system can only stay in place if there is widespread acceptance of it. The massive profits made on the financial markets have to be better shared. Things can be corrected by means of a tax on financial transactions,” he added.
“There is no time to lose in putting in place such an instrument which will calm the speculation fever and bring revenue to member states,” said the joint leaders of the Greens, German Rebecca Harms and Frenchman Daniel Cohn-Bendit. The idea already had majority support in the Parliament, they said. Cohn-Bendit, however, give no suggestion as to how great or small a percentage the possible tax should be, brushing aside any technical difficulty in applying such a tax. He also argued that all market players should be involved in the austerity efforts needed to stabilise budgets, not just households, but also healthy major companies, and especially oil companies which have made massive profits over the last few years. Criticising Greece's incredible dependence on oil imports (80%), when it was a country that could make use of its potential in solar power, Cohn-Bendit called for state expenditure to be redirected towards investment funds for major environmental and energy saving projects, including redirecting structural funds towards environmental restoration. Lastly, he said that it was “unrealistic” to impose a three-year austerity plan on Greece, opining that this was too short a timespan.
Belgian MEP Guy Verhofstadt, leader of the ALDE Group, urged the European Commission swiftly to bring forward “a raft of ambitious and complete measures” to bring economic governance to the euro area and the EU. This project should be based on four points: - the reduction and removal of the budgetary gap which separates EU member states and the euro area, by means of a strengthening of the Stability Pact; - a legally binding EU 2020 strategy; - setting up a European Monetary fund; - putting in place a compulsory European market.
Although all the leaders of political groups took a stance in favour of a tax on financial transactions, Daul acknowledged that there was still division over this matter among EPP Conservatives. “Personally, I am in favour but I know that I shall have to discuss the matter within my group”, he admitted. The French deputy also called for “drastic measures”, saying a “major revolution” was needed in terms of budgetary and taxation coordination between member states, as well as a reduction in EU operating costs including the salaries and pensions of European officials. (E.H./transl.rt)