FTT in some countries is better than no FTT at all!

(Brussels 27 June 2012) Today, the European Federation of Public Service Unions (EPSU), ahead of the European Council on 28-29 June, has sent a letter to the Danish and Cypriot Finance ministers urging them to support enhanced cooperation for a Financial Transactions Tax ( FTT).

Despite the fact that unanimity of the EU 27 governments was not reached at the last ECOFIN meeting of 22 June, Europe has still a chance to implement an FTT and the EU Presidency has a key role to play.

EPSU has already expressed its support for the Commission’s proposal that should be as broad as possible. It does not share the concerns voiced by some governments regarding the risk of capital flight and damage that would ensue to financial markets.

For now, the undertaxed financial sector has yet to foot the bill of the crisis it has caused, leaving instead those who have the least to bear the brunt of the crisis. The bail-out in Spain and Cyprus leaving more than 20% of the population using the Euro without direct sovereignty over its economic policy shows that Europe needs to start confronting the financial markets.

Carola Fischbach-Pyttel , EPSU General Secretary, says “As we are entering the 5th year of the financial crisis and its series of cuts in jobs, pay and viability of public services, the FTT is a progressive tax to curb financial speculation, generate much needed public income and indeed growth and jobs in Europe”.

“We agree with Mr Algirdas Šemeta, EU Commissioner for Taxation, that enhanced co-operation is better than no result at all, allowing a group of the willing to set a precedent that no doubt will attract more followers across Europe and indeed from other continents” she added.

EPSU has been campaigning on FTT since the beginning of the crisis and will continue to do so. In the coming months it will also launch a European campaign to fight tax fraud and evasion, as part of the trade union alternatives to austerity in Europe.

For more information: Pablo Sanchez, psanchez@epsu.org 00 32 474 62 66 33

EPSU is the European Federation of Public Service Unions. It is the largest federation of the ETUC and comprises 8 million public service workers from over 275 trade unions; EPSU organizes workers in the energy, water and waste sectors, health and social services and local and national administration, in all European countries including in the EU’s Eastern Neighborhood. EPSU is the recognized regional organization of Public Services International (PSI).