Brussels, 15/06/2016 (Agence Europe) - The Austrian Finance Minister, Hans Jörg Schelling, who is informally chairing the ministerial meetings for the reinforced cooperation on the financial transactions tax (FTT), is to push his opposite numbers into making a decision, at the meeting of the Ten this Thursday 16 June 2016. “From his point of view, it is time to say 'yes' or 'no'”, a source close to him explained. Whatever happens, Schelling will be handing over his duties, as he has become frustrated at this leadership role.
In recent months, the political engagement of Belgium, Slovenia, Slovakia and also Italy have often raised questions. As far as the smaller delegations are concerned, even if they fear that their concerns will not be taken on board, it is felt at this stage that their success or failure will be collective. June 2016 was the deadline set by the ministers in December of last year to agree on the outlines of the FTT, which is still known in the jargon as the 'core engine'. The initial idea was to continue, in the second part of the year, discussing rates and how to allocate the income from the future tax.
However, the ministers are no longer just a missed opportunity away. The ones with the greatest misgivings are talking about the possibility of publishing a joint statement to take stock of the aspects on which there is agreement. When asked what this publication would say over and above that of December 2015, one source replied: “a few nuances, a handful of new elements”, such as the scope of application of the derivative products and the fact that the FTT should not weigh on the public debts.
In order to keep Belgium on board, reference should be made to the impact on the pension funds and the real economy, which must not suffer from the tax, according to the Belgian government's statement. In spite of this, a number of sources indicate that Belgium is perhaps not acting constructively. Civil society, moreover, has focused its attention on the Belgian authorities. “It would be logical for the work to continue” on the core engine, our first source told us. The second one said that the main thing is not to allow the whole project to unravel.
For its part, the European Commission is preparing for any eventuality, even that of a change of the parameters of the tax, to make it easier to negotiate without killing off the reinforced cooperation. The first source seemed to suggest that the participating states had not asked for this. Furthermore, they have themselves identified a number of parameters, as the scope of the tax no longer extends as far as bonds, as provided for by the Commission. It is reported that the non-participating countries feel that the Commission would have much to gain from relaunching the VAT on financial services project, which could well be more consensual and which the Commission is planning to withdraw this year. (Original version in French by Elodie Lamer)