Brussels, 14/12/2011 (Agence Europe) - The new head of the Italian government, Mario Monti, indicated on Wednesday 14 December, that Italy is prepared to support the tax on financial transactions. This effectively revises the position of the former government of Silvio Berlusconi, which opposed this tax.
During his presentation of the European Council results of last Thursday and Friday to the Italian Senate, Monti stated that “Italy is prepared to reconsider its position” although “traditionally, Italy and particularly its previous government were opposed to the hypothesis of a tax on financial transactions, such as a Tobin tax, unlike France and Germany”. He added: “We indicated that Italy was prepared… to join those in a primarily European plan on this tax.”
Although austerity measures are increasing tax pressures in the country, Monti explained that “one of the ways to bring down tax on households and companies is also by extending taxation to the financial community and big financial players”. The subject of the tax on financial transactions was relaunched in August by the Franco-German duo and its setting up at a global level was debated at the G20 on 3-4 November in Cannes. A large number of countries, however, are fiercely opposed to this tax, particularly the US and China. The initiative at a global level appears, for the time being, to be stuck in an impasse. In Europe, on the other hand, things look as if they are beginning to shift and in September the European Commission presented a proposal for the tax to be applied at a European Union level, as from 2014, which could yield dividends of up to €55 billion a year. The rates applicable would be 0.1% on shares and bonds and 0.01% on other financial products. Within the EU, however, there is sharp opposition, such as that displayed by the United Kingdom, which is afraid of the City of London's financial clout losing out, and Sweden, which in the 1990s attempted to launch such a tax on its own and which ultimately ended in failure. (LC/transl.fl)