Brussels, 01/07/2011 (Agence Europe) - We know that it is hard and that it will require unanimity among the member states, but “the Europeans are right to make this proposal” for a financial transaction tax (FTT), said European Commissioner for the Single Market Michel Barnier, addressing a small group of journalists on Friday 1st July. “If the Europeans do not take this initiative”, who will, he asked, a reference to the reluctance of the members of the G20, such as the United States, to bring in this type of tax. According to the commissioner, the FTT is “economically bearable for the financial markets, technically easy to implement, financially productive and politically fair”. It is also “the proof that we want to humanise globalisation and make it a success”. Stressing the importance of the message sent out by this tax, which is very popular among European citizens, Barnier acknowledged that events in Greece had “favoured the debate” within the European Commission, which has included this initiative in its proposal on the forthcoming multi-annual financial framework (EUROPE 10409).
Sources close to the commissioner explained that the future tax could be modulated and apply in a greater degree to more speculative transactions, such as those of “hedge funds”. There is, obviously, “a risk of evaporation”, but we can reduce this risk by adopting the legislative texts on the table, such as the proposed regulation on derivative products, which will increase transparency through registering transactions on standardised derivatives with trade repositories. The ECB, which agrees with the United Kingdom, warned of the risk of relocation of financial activities outside the EU if it goes it alone on this dossier. (M.B./transl.fl)