Campaigning for a European Financial Transaction Tax
In 2009, the Europeans for Financial Reform (EFFR) coalition was launched and progressive partners joined forces under the motto "Regulate global finance, now!" The next year, the coalition decided to focus on a campaign on the Financial Transaction Tax (FTT) and organized International conferences in Brussels, Madrid, Vienna and Barcelona, meetings in Brussels, Athens, international action days and campaigning material. We coordinated with a wider group of NGOs and joined forces for media Stunts.
In March 2010, the European parliament passed a resolution calling on the European Commission to consider the financial transaction tax option. One month later, on 6th April 2010, the European Commission published a "working paper" (which is not a legislative proposal) on innovative sources of financing, which criticized the financial transaction tax. The official position of the European Commission was to "support the idea of a Financial Transaction Tax (FTT) at global level".
On October 20 2010, the Beres report on "the financial, economic and social crisis: recommendations concerning measures and initiatives to be taken (mid-term report)", was adopted with a large majority including the social democrats, the Greens, the liberals and the conservatives and its article 63 mentions:
"(The European parliament) Favours the introduction of a tax on financial transactions, the revenue from which would improve the functioning of the market by reducing speculation and help to finance global public goods and reduce public deficits; considers that such a tax ought to be as broadly based as possible or, failing that, that the financial transaction tax should be introduced as a first step at EU level; calls on the Commission swiftly to produce a feasibility study taking into account the global level playing field and to come forward with concrete legislative proposals"
First Phase of the 2011 campaign: joining forces in the European parliament
At the beginning of 2011, we knew the FTT would not be agreed upon at international or G20 level in the next years, so this should be put on the European agenda as a first step. Socialists MEPs and the PES started campaigning, through a photo campaign and press statements.
In the European parliament, the Group of Socialists and Democrat appointed Mrs. Podimata, a Greek Member (MEP), as rapporteur of an "own initiative report" on innovative financing. This covered, among others, the financial transaction tax issue.
Before drafting the report, Mrs Podimata's office consulted Civil Society Organisations. The report is progressive and pro-FTT and supported by left wing political groups in the European Parliament.
Challenged in a first vote in the committee for economic and monetary affairs, the Europeans for Financial Reform decided to mobilize for the final vote.
In a week time, hundreds of thousands of petitions were sent to all MEPs in the European parliament, to the support the S&D position, through an EFFR web tool. The EP finally voted in favor of an EU-wide FTT, in the a resolution adopted in March.
Second phase of the 2011 campaign: influencing the European Commission
But one day after the vote, the Taxation Commissioner, Semeta, called it "irresponsible and premature", before launching a very technical consultation on financial sector taxation. The Europeans for Financial Reform worked together and signed a common response to the EC consultation. In parallel, citizens from all around Europe were mobilized again, through media stunt organized by NGOs, and through the web again, thanks to the EFFR webtool (400 000 petitions).
On June 8, the European Parliament reiterated its position and socialists called for a tax on financial transactions to give the EU a new source of revenue, a position defended by Göran Färm MEP in the context of discussions on the future EU financial framework.
The result was clear: the European Commission changed its position: in July, Barroso announced a proposal for the autumn. With this proposal, the FTT would be in the hands of the European Member States, and that's where the fight at national level started.
Third phase of the 2011 campaign: reaching national Governments
In May-June, over 1 000 Members of national Parliaments, from the Socialist, Labour, and Social Democrat parties, signed for a financial transaction tax of 0.05% against speculation.
At the same time, hundreds of thousands of petitions sent by the citizens to their Governments called on them to introduce an EU FTT, ahead of the June 24 European Council, where Heads of State and Government of the EU met to discuss next steps on a Financial Transaction Tax. This was done through the EFFR web tool, which was translated in 8 different languages by the EFFR coalition.
On June 22 (European Day of Action), the Mayors of Brussels and Nantes called for Financial Transaction Tax (FTT). Thielemans and Jean-Marc Ayrault, at a high-level meeting with European Federation of Public Service Unions (EPSU) General Secretary Carola Fischbach-Pyttel.
The European Commission published a proposal for an EU FTT on 28 September, and its strengthening and adoption will be the main challenge for 2012.