Brussels, 24/05/2016 (Agence Europe) - The European Commission is starting to consider alternatives to the financial transactions tax (FTT), according to a source close to the dossier at the Commission.
Within the institution, there is a desire not to give up on the first enhanced cooperation in taxation matters. It will therefore be necessary to remain within the existing framework whilst changing the parameters. The Commission is reported to be interested in the Slovenian tax on financial services, which is based on fees.
The stated aim of the 10 states participating in this enhanced cooperation is to reach an agreement on the outlines of the future tax in June, which is the latest in a long line of deadlines they have set. Elections in Spain at the end of June also raise the possibility that the 10 states will unanimously subscribe to a common declaration. The Commission is therefore taking a few precautions, as it is particularly keen to avoid any evidence that enhanced cooperation in taxation matters does not work, as it is planning to relaunch a proposed common consolidated corporate tax base (CCCTB) in November of this year and hopes that this will see the light of day under the current configuration of the Commission.
In a discussion of all 28 member states on Friday 20 May, the participating member states had little progress to present to their opposite numbers. The Belgians in particular were reported by several sources to be increasingly reluctant. The Austrians and the Portuguese did make proposals for this meeting, for instance on the possibility for the Commission to amend the tax three years after its entry into force, then every five years, in order to broaden its scope. Portugal and Austria consider that these amendments will be voted on by qualified majority. The proposal was not met with overwhelming enthusiasm by the other delegations. A progress report is to be included on the agenda of the Economy/Finance Council of June. (Original version in French by Elodie Lamer)