Conservative Majority European Council is yet to deliver on Financial Transaction Tax

After calling yesterday for exploring and developing further the introduction of a global tax on financial transactions, the Conservative dominated European Council must now deliver on its commitment, says Party of European Socialists President Poul Nyrup Rasmussen. “There is a fine line between hope and disappointment” he said, adding that “unfortunately recent history shows that another u-turn from Chancellor Merkel and President Sarkozy is not an unlikely event.”

Ahead of the G20 Summit in Toronto next week, the European Council has taken position in favor of a system of levies and taxes on financial institutions to ensure a fair burden sharing of the crisis. The PES, together with a broad coalition of Trade Unions and NGOs (Europeans for Financial Reform) has been long advocating the implementation of a tax on financial transaction of 0.05%, which could raise up to €200 billion per year in Europe.

The financial transaction tax is a crucial measure to avoid austerity and to rebalance budgets, while ensuring growth and jobs.