Brussels, 03/07/2013 (Agence Europe) - On Wednesday 3 July, the European Parliament (EP) adopted by a wide majority a report by Greek Socialist Anni Podimata on the financial transactions tax (FTT) that eleven countries are planning to introduce using the enhanced cooperation mechanism (see EUROPE 10869).
The report urges the eleven countries and the wider EU28 to introduce a 0.1% tax on 1 January 2014 on shares and bonds and 0.01% on derivatives, combining the state of origin and the state of emission rules for the financial establishments in question. The rapporteur and two shadow-rapporteurs - Otmar Karas (EPP, Austria) and Philippe Lamberts (Greens/EFA, Belgium) - are pleased that the main parts of the draft legislation have been saved despite vehement opposition from the financial industry and some member states not involved in the tax. Lamberts explained that the tax basis for the FTT has even been expanded to currency deals and the general exemption for pension funds has been rejected with a transitory measure instead being introduced for pension funds whereby, for the first three years, they will pay half the FTT (0.05% rather than 0.1%), admitting that the exemptions laid down in the report will damage the effectiveness and simplicity of the FTT. The three MEPs say that the EP, which has only been consulted on this issue, is recommending in the long-term an FTT that applies to all 28 member states, because an FTT in only eleven countries will probably mean an uneven playing field and lead to the relocation of business in the financial industry. (FG/transl.fl)