October 8, 2012
Next Tuesday the Council of the European Union will discuss the introduction of a financial transaction tax (FTT). In 2011 the Commission proposed a directive introducing a FTT. However, it was not possible to find an unanimity in the Council. As a result, some member states have decided to go ahead and support the idea of enhanced cooperation. France and Germany are at the forefront of this battle. Italy supports a FTT even though I have the impression that our position should be bolder.
The European Parliament has already paved the way for a FTT. We have called for a two-tier tax rate system: The tax rates proposed by the Commission (0.1% for shares and bonds and 0.01% for derivatives) are backed by the Parliament and pension funds should be the only sector exempted from this tax.
The introduction of a FTT is essential to better regulate financial capitalism. We should never forget that excessive and unregulated finance based on free movement of capitals has caused the current global crisis. It is time to fight financial deregulation not only in our speeches but through real actions. Let’s do it tomorrow.Author : Gianni PITTELLA MEP