NEWSLETTER : APRIL 2010
FINANCIAL REGULATION WATCHDOG
Bank Levy and/or financial transaction tax?
Last week, Angela Merkel defended a decision to introduce bank restructuring rules aimed at reducing 'moral hazard' or the assumption by banks to be bailed out with taxpayer money in the event of a crisis. It will include the introduction of an annual levy on banks' balance sheets, excluding customers' deposits, and reform insolvency law for big banks whose demise could jeopardise the health of the broader financial sector. Germany and France agreed on the argument for a “global responsibility” tax, a levy on banks that would cost the likes of Goldman Sachs, Barclays and JPMorgan billions of pounds every year. The French and German governments said they want to be able to intervene early if a bank is tottering and to wind down systemically important banks, including cross-border ones, in order to "impose market discipline and protect public funds." German conservative politician Volker Kauder said the levy would raise "billions of Euros" from the financial sector. On April 6, Gordon Brown said an insurance fund might encourage the banks to return to risky practices based on the notion that they would be rescued again.
European Parliament passes resolution on Financial Transaction Tax
On March 10 2010, the European Parliament passed a motion for a resolution on a Financial Transaction Tax at EU level. A Financial Transaction Tax could be used for a variety of domestic and international projects including climate change adaptation and mitigation and poverty alleviation. In its resolution, the European Parliament called for innovative financial mechanisms to provide support for adaptation to and mitigation of climate change for developing countries, as well as for financing development cooperation.
Europeans for Financial Reform Conference on the financial transaction tax
European Socialists said that the EU could gain €200 billion a year if a financial transaction tax of 0.05% were to be implemented on all products by 2011.
The estimate, drawn up by the Party of European Socialists (PES) and launched on 15 March, would be levied on all spot (simple currency) transactions, exchange-traded and over-the-counter (privately traded) derivatives to prevent speculative bubbles from bursting again. If the US and other major countries also got on board, the tax could raise €500 billion a year, money which could go towards plugging the gaps in public finances and achieving aid pledges, such as the Millennium Development Goals, PES says.
More information at: http://europeansforfinancialreform.org/en/news/pes-european-socialists-call-tax-speculators-conservatives-hesitant
European Commission Report deals with the Financial Transaction Tax
European Union Finance Ministers are meeting informally in Madrid next week. Among a number of items on the agenda, they will discuss a tax on bank leverage and risk-taking that could generate as much as 50 billion Euros ($67 billion) a year for the region’s governments. The prospective balance-sheet levy is among the “innovative financing options” that the European Commission has analysed in a working paper published on April 6, ahead of the meeting of EU Finance Ministers and central bankers on April 16-17 in Madrid. A separate levy on financial transactions, a so-called financial transaction tax, could bring in up to 20 billion Euros, according to the EU analysis.
PES : Commission Response on Financial Transaction tax is ‘an insult to the European Parliament’
PES demands a more considered and engaged response.
The Party of European Socialists (PES) has strongly criticized the recent European Commission working document on ‘innovative financing options’, in particular the section on the Financial Transaction Tax (FTT). “The European Commission has ignored the near unanimous call for a considered response from the European Parliament and is attempting to sweep the issue of a Financial Transaction Tax under the carpet. This is an insult’, said Udo Bullmann MEP, Socialists and Democrats Group (S & D) Coordinator on Economic and Monetary Affairs.
For more information: http://europeansforfinancialreform.org
ETUC urges ECOFIN to support Financial Transaction/Robin Hood Taxes
The General Secretary of the European Trade Union Confederation (ETUC), John Monks today wrote to the President of ECOFIN, Spanish Finance Minister Miss Elena Salgado, and the President of the Eurogroup, Mr. Jean-Claude Juncker, urging ECOFIN to support the Robin Hood Tax, namely a tax on financial transactions.
John Monks added: “It is only right and fair that speculations that account for a majority of many financial transactions should pay tax on their activities. The EU should urge the G20 to introduce such a tax urgently so that it can be used to contribute towards the heavy costs being incurred in combating the financial crisis.”
TAKE ACTION!
Promoting the financial transaction tax through the Video "Vandal Bankers"
To promote the Financial Transaction tax, a video featuring a vandal banker has been produced. It is now up to you make the best out of this campaign video!
To watch the video, click here: http://europeansforfinancialreform.org/en/news/vandal-banker-video
To promote the Vandal Banker Video, click here: http://europeansforfinancialreform.org/en/node/377
Take action on April 24!
At the European Day of Action all EFFR partners are invited to campaign around the same day on one common theme: Financial Transaction Tax NOW! In order to have a maximised campaign impact, it is extremely important that all events throughout Europe are well integrated with each other. In addition to the content material available in the section "A financial transaction tax, now!" of the Europeans for Financial Reform website , you can download leaflets in the goodies section of the website. http://europeansforfinancialreform.org/en/goodies
UPCOMING EVENTS
14 April in Brussels: Conference Who pays for the crisis?
Date and Time: Brussels, 14 April 2010 at 19:00 at the Permanent Representation of Austria to the EU
Location: Permanent Representation of Austria to the EU
30, Avenue de Cortenbergh
1040 Brussels
Organized by AK and OGB (Austria)
Full programme available at: http://europeansforfinancialreform.org/en/events/who-pays-crisis
Registration at: http://www.s2mailblaster.com/eventForm.asp?e=Nzg&c=MzU&S2MBrID=162796
17 April in Brussels : Journée Nationale du Forum Social de Belgique
Date and Time: 17 avril 2010 – 11.00/18.00
Location: Ala VUB
Boulevard de la Plaine 2
1050 Bruxelles
Organised by the Belgian Social Forum http://www.wsf.be
Full programme: http://www.wsf.be/-Journee-Nationale-du-Forum-Social-
24 April all over Europe: European Day of Action for the Financial Transaction Tax
For more information on the Financial Transaction Tax day of action, please consult our event calendar: http://europeansforfinancialreform.org/en/calendar