Additional revenue of up to 57 Euro Billion per year can be generated in the EU 27 (more than other financial taxation proposals being ventilated) and Financial regulation, as certain forms of harmful trading activity would become in-attractive.
In addition, the Commission proposed a link with EU own resources:
2/3 of revenues go to EU budget and 1/3 of revenues directly to national budgets. The share diverted to the EU shall be credited to the Member States. In that way, revenues would reduce overall and automatically the balancing GNI based national contribution of Member States to the EU budget.
Keypoints for the Green Group
– The residence principle as proposed by the COM is considered not tight enough to avoid evasion, hence we suggested to complement it with the issuance and ownership principles as suggested by several academics supporting the FTT. The proposal was broadly adopted.
– On the use of the revenue: We made sure that the final report would give a positive signal for the financing of global public goods such as development cooperation and the fight against climate change. Furthermore, our demand that the revenue shall flow to the EU rather than national budget is covered by a somewhat neutral reference to the own resources proposal.
– The COM excluded on legal grounds (but with no convincing legal expertise transmitted) currency spot transactions which means taking the Tobin Tax out of the FTT. Nevertheless, presenting differing legal opinions helped us to convince the members to include the Tobin Tax.
– Enhanced cooperation: Given the difficulties in Council to agree at the EU 27, level, the Parliament report, gives a positive signal towards enhanced cooperation.
– High Frequency Trading (HFT): The European Parliament has accepted our demand for covering canceled transactions in the review clause. HFT is of course covered if transactions are executed – which is key to regulating financial markets – but much of the casino game consists of placing huge numbers of orders and retracting them.
The attempt of conservatives and liberals to exclude all investment funds (UCITS) from the scope of the FTT could be prevented by a left majority.
(1) OECD, Pension Markets in Focus: http://www.oecd.org/document/35/0,3746,en_2649_34853_36082019_1_1_1_1,00.html