EU MPs want financial transactions tax regardless of opposition

Members of the European Parliament say the introduction of a financial transactions tax should go ahead even if it is opposed by member states.

Tax rates proposed by the Commission include a 0.1% rate for shares and bonds and 0.01% for derivatives. Pension funds are expected to be the only sector exempted from the tax.

Rapporteur Anni Podimata says: “The FTT is an integral part of an exit from crisis.  It will bring a fairer distribution of the weight of the crisis.

“This FTT will not lead to relocation outside the EU because the cost of this is higher than paying the tax.”

The Parliament has been calling for such a tax for two years now and are currently citing the results of a Eurobarometer survey, which indicates that 66% of European are in favour, as a strong basis of support.

The issue of universal support is an increasingly unimportant one as the European Parliament warned a limited introduction could “lead to the single market being undermined”.

“With the EU having the largest financial market, it is up to us to make the first step.  We cannot be held hostage by a handful of member states,” adds Podimata.

December 31, 2013, has been agreed as a deadline for member states to adopt implementing laws and December 31, 2014, for the law to come into force.