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Tue Oct 9, 2012, 09:40 AM

EU reaches quorum of 11 states for financial transaction tax

Source: Europe Online

A further four EU member states pledged Tuesday to join in a controversial financial transaction tax scheme, bringing the total above the necessary nine states required to proceed as a group within the European Union, the EUs top tax official said.

Italy, Spain, Estonia and Slovakia said they would join seven states who had formally written to the European Commission to forge ahead with the levy, spearheaded by France and Germany, EU sources said.

As soon as the commission had received letters from nine member states it would launch the so-called enhanced cooperation procedure, EU Tax Commissioner Algirdas Semeta told a meeting of EU finance ministers in Luxembourg.

Read more: http://en.europeonline-magazine.eu/extra-eu-reaches-quorum-of-11-states-for-financial-transaction-tax_242401.html



The seven EU countries that had already endorsed the financial transactions tax are: France, Germany, Belgium, Austria, Greece, Portugal and Slovenia.

8 replies, 1620 views

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Reply EU reaches quorum of 11 states for financial transaction tax (Original post)
pampango Oct 2012 OP
mountain grammy Oct 2012 #1
tama Oct 2012 #2
JDPriestly Oct 2012 #5
Ghost Dog Oct 2012 #6
tama Oct 2012 #8
dipsydoodle Oct 2012 #3
bemildred Oct 2012 #4
T_i_B Oct 2012 #7

Response to pampango (Original post)

Tue Oct 9, 2012, 09:52 AM

1. Wish I understood this story

but I'll never understand why a country would give up control of it's monetary system and have to beg the bizzilionaire bankers for every dime.

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Response to mountain grammy (Reply #1)

Tue Oct 9, 2012, 10:16 AM

2. This is about so called "Tobin tax"

 

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Response to mountain grammy (Reply #1)

Tue Oct 9, 2012, 12:26 PM

5. That is not what this is about.

This is about getting back the money that the bankers wasted and stole. This is about slowing the fast-trading on the markets which is a practice that causes central banks so much trouble.

Imagine the problem in our country if, instead of having one currency, we had 50, one for each state. That is the problem that European countries had before uniting for the Euro.

The problem for Europe is that they have a unified currency but do not have unity in terms of their national budgets and national borrowing and lending.

We have a big problem in that our currency is really controlled more by the Federal Reserve, which acts like a private entity detached from our democratic process, not by Congress. The Constitution states that Congress is to issue currency, not the Federal Reserve. Congress delegated that power to the Federal Reserve, which decides cavalierly and with a pro-private business bias on how the currency should be issued. We need a lot more oversight of the Federal Reserve. Europe needs far more oversight of national budgets, borrowing and lending.

That's my take on it.

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Response to JDPriestly (Reply #5)

Tue Oct 9, 2012, 01:56 PM

6. Very well put. Clearly stated. Thanks. n/t

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Response to JDPriestly (Reply #5)

Tue Oct 9, 2012, 04:45 PM

8. FTT has nothing to do with

 

"far more oversight of national budgets, borrowing and lending."

From wiki:

The tax would be levied on all transactions on financial instruments between financial institutions when at least one party to the transaction is located in the EU. It would cover 85% of the transactions between financial institutions (banks, investment firms, insurance companies, pension funds, hedge funds and others), but not affect citizens and businesses. House mortgages, bank loans to small and medium enterprises, contributions to insurance contracts, as well as spot currency exchange transactions and the raising of capital by enterprises or public bodies through the issuance of bonds and shares on the primary market would not be taxed, with the exception of trading bonds on secondary markets.

Following the "R plus I" (residence plus issuance) solution an institution would pay the tax rate appropriate to the country of its residence, regardless of the location of the actual trade. In other words, the tax would cover all transactions that involve European firms, no matter whether these transactions take place within the EU or elsewhere in the world. If acting on behalf of a client, e.g., when acting as a broker, it would be able to pass on the tax to the client. Hence, it would be impossible for say French or German banks to avoid the tax by moving their transactions offshore.

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Response to pampango (Original post)

Tue Oct 9, 2012, 11:21 AM

3. Not surprising Sweden declined.

.

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Response to pampango (Original post)

Tue Oct 9, 2012, 12:09 PM

4. Good.

This will bring in lots of revenue OR severely curtail high-frequency trading.

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Response to pampango (Original post)

Tue Oct 9, 2012, 03:29 PM

7. It'll be interesting top see what the UK government does to stop this

A Tobin Tax goes against everything Britain's ruling Conservative party believes in, and clearly against UK interests given how dominant financial services are in the UK economy.

Add into this the increasingly very anti-EU nature of the right wing in Britain and it becomes clear that the British government will do all it can to be exempted from this at the very least.

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