Financial transaction tax: Council of EU agrees to enhanced cooperation

The Council of EU adopted a decision authorising 11 member states to proceed with the introduction of a financial transaction tax (FTT) through "enhanced cooperation".

The Council of EU adopted a decision authorising 11 member states to proceed with the introduction of a financial transaction tax (FTT) through "enhanced cooperation".

The 11 countries are Belgium, Germany, Estonia, Greece, Spain, France, Italy, Austria, Portugal, Slovenia and Slovakia.

The Commission will now make a proposal defining the substance of the enhanced cooperation, which will have to be adopted by unanimous agreement of the participating member states.

Discussions on a 2011 proposal aimed at introducing an FTT throughout the EU received insufficient support within the Council.

That proposal involved a harmonised minimum 0.1% tax rate for transactions in all types of financial instruments except derivatives
(0.01% rate).

The aim was for the financial industry to make a fair contribution to tax revenues, whilst also creating a disincentive for transactions that do not enhance the efficiency of financial markets.

In September and October 2011, the 11 member states wrote to the Commission requesting a proposal for enhanced cooperation, specifying that the scope and objective of the FTT be based on that of the 2011 proposal.

Dernière modification : 24/01/2013

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