Brussels, 25/04/2012 (Agence Europe) - With its approval of the report by Anni Podimata (S&D, Greece) by the wide majority of 33 votes to 11 on Wednesday 25 April, the European Parliament (EP) economic and financial committee strengthened the European Commission's draft directive establishing a financial transactions tax (FTT). Podimata said that this sent a strong signal to the Council and especially to states which are either reluctant or sceptical about introducing an FTT. The vote in plenary session is scheduled for May.
The compromise adopted provides for the taxation of stocks and bonds at a minimum rate of 0.1% and derivatives at 0.01% from 2014. To prevent avoidance of the tax, MEPs propose bringing together the criterion of the residence in the EU of the taxed financial institution, a point included by the Commission in its initial draft, and the criteria of the state of issuance of the security and ownership. In concrete terms this means that “anyone, whether he or she is based in the EU or outside Europe, buying financial instruments issued in the EU would have to pay the tax and that the instrument cannot be legally transferred unless the tax has been paid”, Podimata said. This tax will ensure that the financial sector pays part of the costs of the crisis it caused.
The tax will be collected by the member states though the revenue is to be managed at EU level, so that it can be put to the Community budget or used to finance specific European policies, allowing national contributions to be reduced. “In this time, where EU governments face fiscal austerity, the extra revenue of such a tax could be used to invest in sustainable growth technologies for instance”, the rapporteur said, adding that, if governments do not come to unanimous agreement on an EU-wide tax by September, the FTT will be adopted by a number of countries working in enhanced cooperation.
The S&D Group describes the support of such a wide majority of MEPs for the draft report as a victory. The Greens/EFA Group see the vote as a “snub for the Sarkozy mini-tax” and “strong support for the Commission's original proposal for the broadest possible FTT, which will bring in €55 billion” for national and European budgets and finance European commitments on development aid and tackling climate change. (FG/transl.rt)