NEWSLETTER : DECEMBER 2009
QUOTE OF THE WEEK
"A number of serious questions remain unanswered by the St Andrews meeting, including with regard to assistance for developing countries, a global financial transactions tax, the transparency and governance of the Financial Stability Board (FSB), and the commitment of resources to tackle climate change". ITUC/TUAC Evaluation of the G20 Finance Ministers' Meeting. Click here for the full report.
FINANCIAL REGULATION WATCHDOG
Financial transaction Tax (FTT): European Council’s call for a global financial transaction tax
At the G20 in Pittsburgh, Merkel put forward the idea of a financial transaction tax, but did not seal any deal on "Tobin Tax".
In October, EU leaders asked the commission to examine ways of "innovative financing," including the feasibility of a tax on financial transactions, to help less-developed countries and possibly help reduce national budget deficits.
PES President Rasmussen welcomed the European Council’s decision this month to support the IMF study into a financial transaction tax, while growing support for the FTT is being felt around the Globe.
In the US, a coalition of Democrats in Washington is now pressing a sceptical Obama administration to get on board.
In the UK, A call by UK Prime Minister Gordon Brown for a global tax on financial transactions received some support in Brussels.
Regulation of Hedge Funds and Private Equity
Last spring, the European Commission published a proposal for regulating hedge funds and private equity funds. The proposed legislation is now going through the European parliament and the European Council, through the so-called co decision legislative process.
In the Council, the Swedish Presidency wanted to reach an agreement before the end of the year, but not agreement has been reached so far. ETUC called for stronger regulation on this issue.
In the Parliament, the Gauzes report has been released. Although it recommends strict rules for hedge funds, it does not close the many loopholes of the Commission proposal, which would need to be tackled to make this legislation efficient. Social Democrat voices in the Parliament have raised these issues.
TAKE ACTION!
Push for a financial transaction tax! Write to Barroso!
President Jose Manuel Barroso said the tax idea has "potential," but that "by its very nature such an initiative would need to be implemented globally." The Europeans for financial Reform are calling on the President of the European Commission, Jose Manuel Barroso to push for the creation of a financial transaction tax. Write to Barroso! Tell him we need a financial transaction Tax!
The arguments are clear:
In response to the current crisis, governments around the world have been stabilizing and protecting their economies and jobs with taxpayers’ money. Many citizens ask themselves: Who’s going to pay the bill for this? Are taxpayers the only ones to pay, or will financial markets and investment bankers be held accountable to pay parts of the burden? Taxing the financial sector would enhance fairness. Moreover, this will increase government revenue, which is badly needed to support the transition towards more inclusive, fairer and cleaner societies. While dumping purely speculative, socially useless activities, a financial transaction tax would promote the sustainable, long-term investments that are needed to green our economies. And last but not least, global financial transaction tax of 0.05% could yield revenue of about 1% of nominal world GDP per year. This would provide funding for long-term public investments, to finance global development and climate change. Only through such policies can solidarity at a global level be enhanced.
To know more on the Financial Transaction Tax, click here.
EVENTS TO COME
Now that a compromise agreement has been reached in the Council on financial supervision, the proposed package of legislation will be dealt with in the European Parliament. Intensive discussions on this issue are expected in the first quarters of 2010.
THEY JOINED THE CAMPAIGN
The International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers' Associations (IUF) is an international federation of 336 trade unions in 120 countries representing a combined membership of over 12 million workers. Know more...
The Socialist Mutual benefit society demonstrates highly efficient and up-to-date management methods with its founding values and principles of Solidarity, Health and well-being, Access to health care, management autonomy and Respect for the individual. Its Objectives are the management of compulsory healthcare and sickness benefits scheme, being a Social insurer (complementary insurance products to members) and providing information and assistance to members affiliated in order to promote physical, mental and social well-being. People covered : 3 million beneficiaries. Market share in Belgium : 28.6% of market share. Know more...
The Confederation of German Trade Unions (DGB) is the umbrella organisation for trade unions in Germany.The DGB stands for a social solidarity. Work and income have to be distributed fairly and people must receive equal chances independent of their origin, skin colour or gender. The DGB offers trendsetting concepts for a social market economy tailored to suit changed social frameworks. Know more...
The ABVV-FGTB is made up of members , activists, shop stewards and union representation. Each member is affiliated to a regional branch union that designates its representatives on the regional committee. All the members, activists and delegates of the ABVV-FGTB may express themselves freely within the organisation. They are represented at all institutional levels of the ABVV-FGTB. The ABVV-FGTB comprises nearly 1,4 million members, who have come together to defend their rights, and also fight for a more just world. Come and meet a trade union with fighting spirit, that knows how to negotiate when it's possible, to fight whenever it's necessary... Know more...
CNCD 11.11.11. is an umbrella organisation, mainly made up of Development NGOs, but alos trade unions and education organisations. All these civi societies are heavily engaged in international solidarity, and are located in the French-speaking and German-speaking regions of Belgium. Know more...
The Austrian Federal Chamber of Labour AK is the umbrella organisation of the nine regional Chambers of Labour in Austria and is by law representing the interests of 3.2 million employees and consumers in Austria. It acts for the interests of its members in fields of social, educational, economical, and consumer issues both on the national and on the EU-level in Brussels. Furthermore, the Austrian Federal Chamber of Labour is a part of the Austrian social partnership. Its AK EUROPA office in Brussels was established in 1991 to bring forward the interests of all its members directly vis-à-vis the European Institutions. AK is firmly committed to a sustainable and effective regulation of financial markets that serve the real economy as well as workers and employees. Know more...
Cevea is a Danish independent centre-left think tank that develops progressive ideas for a future Denmark based on freedom, fairness and community. The starting point for Cevea is the values of freedom, fairness and community, which together are a modern version of the catchphrase of the French Revolution. These values have been consistent for the progressive left and the labour movement that has wanted to create European welfare societies without armed revolution. Know more...
The Austrian Trade Union Federation (ÖGB) is the only Austrian organization representing the interests of workers based on voluntary membership. Seven trade unions are organized under the umbrella of the ÖGB, whose number of members is now approximately 1.2 million. The ÖGB is affiliated to the European Trade Union Confederation (ETUC) and the International Trade Union Confederation (ITUC). The ÖGB-Europabüro is the Brussels office of the ÖGB promoting workers interests at the level of the European Institutions and Organizations. Know more...