The PES Group in the CoR joins forces with the Party of European Socialists and the European Parliament's S&D Group, urging for a Financial Transaction Tax NOW!
The PES Group in the CoR has joined the campaign of the Global Progressive Forum for a “Financial Transaction Tax NOW!”.
'Socialists and Social Democrats in Europe have the solution to irresponsible speculation, to the lack of regulation and to the risk of further crises through the implementation of a financial transaction tax", said PES Group President KARL-Heinz KLÄR, in a letter co-signed by himself and PES President Poul-Nyrup RASMUSSEN. The current discussion within the Committee of the Regions on President Klär's draft opinion on the ‘Lessons to be learnt from the financial crisis for financial supervision and public finances’ fully subscribes to this initiative.
On 24 April, the PES will hold a European Day of Action on the financial transaction tax (FTT) with a view to mobilising citizens and decision makers about the imposition of a tax every time a financial product is bought or sold. This tax would represent a very small proportion of the financial product's price (0.05%).
The International Monetary Fund (IMF) was asked by G20 Leaders to make a proposal on ‘how the financial sector could make a fair and substantial contribution” to the burden that the rescue operations imposed on society. One of the solutions being investigated by the IMF is the FTT. The next G20 summit is due to place in Canada on 26-27 June.
European Socialists and Social Democrats believe that a financial transaction tax is the right tool to get the financial sector to pay for its crisis, as this could generate up to €1000 billion every year. At global level, the FTT could help meeting climate change objectives and eradicating extreme poverty. At European level, it could help Member States' economies to recover from the crisis and would provide money to invest and create jobs.
It is worth reminding that the financial crisis had a huge direct cost for society as the rescue operations for the financial sector were financed through tax payers' money. Local and regional authorities have been also directly affected. By the end of 2011, the crisis will have cost €3,000 billion euro in debt to the EU as a whole, that is, €6,000 per citizen! What is more, the financial crisis has driven 7 million Europeans to unemployment and they could be joined by another million by the end of this year.
The financial transaction tax, imposed on bankers only and not on ordinary people, is the right tool to limit speculation and change the business model of the financial system for the better.