Transaction tax European consensus over watered-down ‘Tobin’ tax

In 2013, the Commission floated a 0.1% levy on stock and bond trades and 0.01% on the more complex derivatives.


Afp September 14, 2014

MILAN:


After much struggle, European finance ministers have agreed to a watered-down transaction tax with Germany. France, eager to protect its lucrative derivative trading sector, has shown resistance over the decision. 


The European Commission, backed by Germany and France, proposed this tax on financial transactions, following the ‘Tobin Tax’ to reduce speculations in global markets, and redistribute Wall Street profits to poor countries. The Europeans, however, agreed upon forwarding the proceeds towards financial bailouts, sparing tax payers from saving big banks caught out by over-speculation.


Opposed by many member states, only 11 countries including France and Germany went with the idea.


In 2013, the Commission floated a 0.1% levy on stock and bond trades and 0.01% on the more complex derivatives.


Published in The Express Tribune, September 14th, 2014.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ

E-Publications

Most Read