Barroso will propose an FTT to fund jobs in the EU
Financial Transaction Tax Would Be One Of The Key Items On EU Autumn Agenda Says Barroso
Source: eGov monitor -A Policy Dialogue Platform
Published Thursday, 1 September, 2011 - 06:20
The European Union would back French President Nikolas Sarkozy's plans to push for a global financial transaction tax at the G20 summit in November, the European Commission President Barroso said.
The Commission President in a video speech on Wednesday laid out the EU's agenda for the autumn and highlighted the economic governance package along with the reform of the European Financial Stability Fund (EFSF) as key priorities.
He also reiterated claims by other EU leaders that European banks are well capitalised and assured his audience that the European Union is "committed to seeing the process through". He pledged publication of a European Financial Tax proposal this autumn which he claimed "would d help to fund the EU's new multiannual financial framework, which is geared towards investing for growth and jobs across our Union."
However neither member states nor European Banks much like the idea of a European Tobin Tax. Member states oppose on the grounds of Europe having direct tax raising powers and European Banks argue that this tax would not help to clam markets.
There is little support from the European Central Bank as well because outgoing ECB President pointed out that a financial trnsaction tax would not work unless it was applied globally.