Socialists and Democrats Euro MPs Wednesday won a cross-party majority in the European Parliament to introduce a tax on financial transactions in Europe that can generate additional revenue of close to €100 billion per year. ” I’m really delighted that this report for which our political family has led the campaign for years now, has finally been approved with a large majority “, said S&D Euro MP and negotiator for the European Parliament, Anni Podimata, after the vote.
S&D Group has been campaigning for years now for this tax, and we are winning the argument. The financial transaction tax (FTT) is a key part of the Socialists and Democrats’ strategy to exit the crisis.
Stocks and bonds would be taxed at a minimum rate of 0.1% and derivatives at 0.01% by 2014, according to the European Parliament’s proposal.
According to the S&D, The revenues it will bring can help boost growth and job creation and be used to finance investments in the green economy without deepening public debt or deficits.
Such a tax would also reduce the risks of another financial crisis. It will make the financial sector more stable, less short-termist and more focused on financing the real economy.
The FTT is also fair since it would mean the financial sector pays part of the costs of the crisis it provoked, rather than leaving the bill for taxpayers.
“We believe that everything has to be made in order to get an EU-wide agreement, but if this proves impossible, then we believe that a significant number of MS which would want to proceed could and should move forward according to the rules of enhanced cooperation” Anni Podimata said.
While EU governments are still arguing about this issue, the European Parliament has taken a clear position based on the European Commission’s proposal.
“If no agreement can be reached at EU level, we can’t be taken hostage by a few member states” added Mrs Podimata.
