Late yesterday, Estonia joined the 10 countries that plan on implementing a Financial Transaction Tax (FTT), due to the lack of agreement on implementing an EU wide Tax.
The 11 countries who will implement the tax next year are:
According to Commission President, Jose Manuel Barroso
“This tax can raise billions of euros of much-needed revenue for member states in these difficult times. [..] This is about fairness – we need to ensure the costs of the crisis are shared by the financial sector instead of shouldered by ordinary citizens.”
But where will this money go? One suggestion is that this tax revenue would go into a Eurozone budget as all 11 countries use the Euro. While Development NGOs argue that the revenue should go towards those most in need in developing countries.
The Tax this has a way to go before it comes into force, and still has to be approved by the majority of Member State’s at council level as well as the European Parliament.
The EU-wide tax was shelved following opposition from Ireland, Luxembourg, Malta, Poland, Sweden and the United Kingdom, who fear being at a disadvantage in the absence of a World-Wide Tax.
More states can still sign up to this, but until details on the amount of tax charged on financial transaction and where the revenue goes is agreed, it is doubtful if the number of states involved in this enhanced co-operation will increase..
Interesting things often pop into my inbox, so here is one for all of you with interest in the EU and Economic Policy. I will be there, so do say Hi if you attend!
The European Commission Representation in Ireland invites you to an evening seminar on‘European Economic Policy – What’s in it for Ireland?’
Featuring presentations from local and national economic and political experts, this public event will provide you with an opportunity to voice your opinions and ask any questions you may have about the current economic situation. This event will take place from 6.30pm – 8.30pm on Tuesday, 2 October on the University College Cork campus. Further detail, including information on the guest speakers, will follow shortly. In the meantime, please RSVP to firstname.lastname@example.org or call 01 662 5815 to reserve a place at this free event.
I will update this once the speakers are confirmed.
This will be one of three referenda held in Ireland this year. The other two will be on the long awaited Children’s Rights Referendum and on abolishing the Seanad.
The decision to hold a referendum has been welcomed across the political spectrum, though also drawing battle lines with Fine Gael, Labour and Fianna Fail in favour of ratification and Sinn Fein, the ULA and some of the independents.
Estonia is set to join the Eurozone on the 1st of January 2011 according to the Irish Times. Estonia was given the all clear by the European Commission. Estonia will be the fifth of the 2004 intake to join the common currency following Slovenia in 2007, Malta and Cyprus in 2008 and Slovakia in 2009.
Plans by Poland, Hungary and the Czech Republic are still not on track, so they will not be joining the currency any time soon.
It is interesting considering the current state of the eurozone that it is willing to continue to expand.
The Commission stated that “None of the other eight countries assessed in the report is found to meet all the convergence criteria for adopting the euro” Those countries are: Bulgaria, the Czech Republic, Latvia, Lithuania, Hungary, Poland, Romania and Sweden.
The Council of Ministers will have to approve this.