The European Citizens’ Initiative (ECI) proposing a tax on great wealth—launched by MEP Aurore Lalucq (S&D, French), President of the Belgian Socialist Party Paul Magnette, economists, millionaires, and non-governmental organisations—collected more than 100,000 signatures in January (see EUROPE 13244/21).
Launched in June 2023, it needs to collect at least one million signatures from at least seven Member States within one year in order to result in a legislative proposal by the European Commission.
This milestone was reached when Oxfam published its annual report on inequality on Monday, 15 January. The non-governmental organisation reveals that the fortunes of the five richest billionaires in the world have more than doubled since the start of the decade, while 60% of humanity has become poorer. A progressive tax on the wealth of the EU’s multimillionaires and billionaires—at a rate that would be between 2% and 5%—could raise €286.5 billion a year. According to the study, 40% of the EU’s Recovery Fund could be funded by this tax.
“I’m not surprised by the results of this report”, Ms Lalucq revealed to EUROPE on Tuesday, 16 January. “This is exactly why we proposed this ECI: the wealth of the ultra-rich is exploding; the rich are—admittedly, badly or insufficiently—taxed, but the ultra-rich are not taxed at all”, she stressed.
According to the MEP, the increase in the number of very, very poor people; inflation; and the resulting fall in real wages must be countered by tax policy. She thought that it was necessary for this kind of report to fuel public debate. “This issue was really taboo 3 years ago, but it isn’t anymore”, she felt. Hopeful, she believes, “Now, it’s present and anchored in public debate; I’m convinced that it will happen”.
Read Oxfam’s report: https://aeur.eu/f/aes (Original version in French by Anne Damiani)