Brussels, 08/03/2011 (Agence Europe) - On Tuesday 8 March, the European Parliament called for the introduction of a global and EU tax on financial transactions (TFT) when they adopted by 529 to 127 (and 19 abstentions) a report by Anni Podimata (S&D, Greece) on innovative forms of finance.
The EP recommends introducing a TFT, from which the income raised could be used to improve the functioning of the market by reducing speculation and helping finance world public goods (along with cutting public deficits). It says that the EU should encourage introduction of a TFT at global level and that to start off with, the EU should in the meantime introduce its own TFT. A low TFT could generate some €200 billion of income a year at EU level (and €650 bn worldwide).
The EP points out that eurobonds are frequently described as a way for the EU to take on debt and the Commission is asked to launch an investigation into the future eurobond system to see how it could benefit all participating member states and the eurozone as a whole.
Carbon tax. The EP says that the current tax model should fully subscribe to the polluter-pays principle by using suitable forms of innovative financing to gradually transfer the tax burden onto business and activity that pollutes the environment, produces greenhouse gas in large quantities or guzzles resources. It recommends boosting the carbon trading system (SCEQE/ETS) and revising the directive on energy taxes.
During the vote, the EP approved a paragraph calling on the Commission to look into the feasibility of an EU carbon tax akin to VAT, levied on all products within the single market!
The EP urged the Commission to suggest the introduction of innovative forms of finance at EU level to fund development. (L.C./transl.fl)