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..
- As Eleven Nations Pledge Support, Robin Hood Tax Gains Foothold in Europe (commondreams.org)
- EU backs finance transaction tax (bbc.co.uk)
- EC approves 10 eurozone states’ plan to roll out financial transaction tax (nzweek.com)
- European Commission backs financial transaction tax plan by 10 eurozone countries (independent.ie)
- European financial transaction tax moves step closer (guardian.co.uk)