MEPs push forward plans for financial transaction tax
04 February 2011
The European Parliament approved a non-legislative report on Innovative Financing by MEP Anni Podimata and backed by the ECON Committee. The Podimata report suggests that an EU Financial Transaction Tax (FTT) could help finance budgets, reduce public deficits and fight speculation.
The report proposes a FTT of between 0.01 per cent and 0.05 per cent, to limit the risk of transaction flows; that aims to cut speculation; has a broad base, including every type of transaction, to avoid flows toward less regulated parts of the financial sector; and has clearly defined exemptions and thresholds, taking into account the needs of the retail sector, and small investors and individuals.
The report suggests revenue potential of a low-rate FTT with its large tax base, of nearly €200 billion a year at EU level and $650 billion at the global level. Members have called on the Commission to conduct an impact assessment on the FTT to determine its effects on the competitiveness of the European financial system. The report is expected to be on voted in plenary in March.
© European Parliament
