Brussels, 08/04/2014 (Agence Europe) - EU Taxation Commissioner Algirdas Semeta was given broadly positive feedback about his work at his meeting with MEPs from the European Parliament's economic and monetary affairs committee on Monday 7 April, where he focussed on outstanding issues that he would like to see tied up before the end of his term of office, particularly the financial transactions tax (FTT).
“Few would have believed, five years ago, the remarkable progress that could be made in EU tax policy over the course of this mandate”, commented the commissioner. He pointed out that the idea was very popular among the public as the incarnation of a fair tax, and welcomed the decision of the finance ministers of the eleven countries planning to introduce the tax using the enhanced cooperation mechanism to meet on the fringes of each Ecofin Council to work on the matter. “Today we cannot say what will be the final outcome of the discussions, truly difficult negotiations are ongoing”, he commented, but said he was quite optimistic. He hoped the eleven finance ministers would hold true to their commitment and reach agreement as soon as possible. Spanish Finance Minister Luis de Guindos said last week that agreement in principle had been reached, but sources said that not much progress had been made, and certainly no agreement in principle. Austrian Finance Minister Michael Spindelegger told this newsletter he hoped agreement would be reached in May on the broad outlines of the first phase of application for the FTT (on shares and some derivatives at first, see EUROPE 11052). The controversial areas that still need to be settled are: the scope of application (which derivatives will be taxed in the first stage); whether countries will use the principle of issuing (tax applying to transactions by and institution registered in one of the eleven countries) or the principle of ownership; how tax income is to be paid out. Semeta said that, in the end, the FTT “would not be as ambitious as the European Commission's proposal” because the eleven countries are taking a step-by-step approach, but he was “quite optimistic”. (EL)