It’s payback time for the financial sector

Posted on | September 28, 2011 | No Comments

Barroso introduced the new tax in his state of the union speech in the parliament this morning.

The EU commission has today proposed a new tax, that will tax the exchange of shares and bonds by a rate of 0.1% and derivative contracts , at a rate of 0.01%.

José Manuel Barroso introduced the proposal in his State of the Union speech in the European Parliament this morning, and the commission held an press conference on the subject some hours later.

Here is how Barroso’s explained the tax.

“In the last three years, Member States – I should say taxpayers – have granted aid and provided guarantees of € 4.6 trillion to the financial sector. It is time for the financial sector to make a contribution back to society. That is why I am very proud to say that today, the Commission adopted a proposal for the Financial Transaction Tax. Today I am putting before you a very important text that if implemented may generate a revenue of above € 55 billion per year. Some people will ask “Why?”. Why? It is a question of fairness. If our farmers, if our workers, if all the sectors of the economy from industry to agriculture to services, if they all pay a contribution to the society also the banking sector should make a contribution to the society.”

Algirdas Šemeta, Commissioner for Taxation, Customs, Anti-fraud and Audit, hope that the rest of the world will follow this example.

“With this proposal the European Union becomes a forerunner in the global implementation of a financial transaction tax. Our project is sound and workable. I have no doubt this tax can deliver what EU citizens expect; a fair contribution from the financial sector. I am confident that our partners in the G20 will see their interest in following this path.”

So far Germany and France has showed support for the proposal, while UK and Sweden are opposing it. To introduce the tax all have to agree on it.

According to the commissions proposal they suggest that the tax will be implemented from January 2014.

Category: Economy, EUgonzo, Politics
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