ECON Committee: financial transaction tax needed to pay for damage caused by crisis
24 February 2010
If a worldwide tax proves unachievable, the MEPs said, the EU could consider going it alone. ECON is urging the Commission and Council to look at how the tax could be used to help developing countries fund the fight against climate change and to finance development cooperation.
The EP’s Economic Affairs Committee believes that a globally implemented tax to discourage excessive risk-taking by financial institutions and to ensure the industry pays for the damage caused by the financial crisis should be considered. If a worldwide tax proves unachievable, the EU could consider going it alone, say MEPs.
At an oral question and resolution adopted last Tuesday on a financial transaction tax, members of the Committee urged the Commission and Council to look at how the tax could be used to help developing countries fund the fight against climate change as well as to finance development cooperation. They should also consider how the tax could contribute to the EU budget, said MEPs.
The Commission has been asked to carry out an impact assessment of such a tax, to see how far it could contribute to stabilizing financial markets and prevent a similar crisis by targeting "undesirable" transactions.
While preferring a global approach through the G20, MEPs believe the pros and cons of introducing a purely EU-wide tax should be weighed up, even if the EU's main partners do not introduce such a tax.
Any such tax must not harm the banking system's ability to perform its vital role of financing real economy investments, stressed the Economic Affairs Committee.
These issues will be put to the Council and the Commission during the March plenary session in Strasbourg.
© European Parliament
