Financial transaction tax
Moment of truth approaches
By Tanguy Verhoosel | Thursday 21 June 2012
Will an “orientation debate” among finance ministers on the potential creation of a tax on financial transactions (FTT) in the EU result in the definitive conclusion that only enhanced cooperation between member states will resolve the current stalemate on the dossier?
At the G20 summit in Los Cabos, Mexico, French President François Hollande announced that he supports the implementation of the FTT from 2013 onwards, even if only within a small group of member states - should it not be possible to reach a compromise between all 27 countries of the EU.
Currently, the member states are far from being unanimous on the issue. In a report prepared with an eye on the orientation debate, on 22 June, the Danish Presidency of the EU recognises that there is a complete impasse regarding this dossier, due to the opposition of certain countries (the United Kingdom, Sweden, etc) to all forms of European intervention in the matter, and fear of delocalisation by other member states (Luxembourg, etc - see
Even the countries that support the tax - about a dozen - are divided over the importance of the project. This could mean that the field of application of the tax would first be limited to actions and obligations on secondary markets, and “eventually” to certain investment funds. It would only be extended to derivatives at a later stage.