THE EU SHOULD TAKE THE LEAD ON A FINANCIAL TRANSACTION TAX

"The G20 summit in Toronto made a lot of noise for nothing", said Martin Schulz today, leader of the main progressive group in the European Parliament.

"This meeting of the leaders of the 20 wealthiest nations in the world over the week-end in Toronto has raised many expectations in Europe but was a complete failure. The coordinated excessive budget cuts by European governments are pushing the world in the wrong direction. This austerity policy is raising the threat of plunging back into recession.

"On top of that, the summit missed the opportunity to introduce a banking tax and a financial transaction tax to put the costs of the crisis where they belong. This is a real disappointment".

"The EU should nevertheless take the lead and go ahead with a banking tax and a financial transaction tax, despite opposition from its partners".

Said S&D vice-president for Economic and Monetary Affairs, labour MEP Stephen Hughes: "the S&D group will keep these important issues at the top of its agenda.

"The S&D group in the European Parliament will, next week in Strasbourg, back a proposal from Socialist Euro MP Elisa Ferreira to create a guarantee fund at EU level designed to offset bank failures and financed by a contribution of banks.

"The Socialists and Democrats will also pursue their campaign for a financial transaction tax. A tax rate of just 0.05% could generate revenues of up to 250 billion Euros that could create millions of jobs if injected into the European economy through investments in trans-European networks or green projects".