EC "Non-Paper" Sheds First Light On Financial Transaction Tax

Tuesday, September 07, 2010

An internal "non-paper" (sic!) of the European Commission Services detailing proposed measures to introduce a financial transaction tax in the EU shows how torn apart Europe is over this issue.
As the document lists only 5 coutries where ideas have developed beyond the headline stage we can expect to see long term discussions.
5 different approaches in 5 countries - France, Germany, Hungary, Sweden, UK - also spotlight the fact that tax harmonization has still a long way to go.
The paper - obtained by Euractiv - stresses that this point is tantamount in order to avoid "distortions" in markets and also calls for speedy multilateral talks to eliminate double or multiple taxation for multinational banks.
EC SERVICES NON-PAPER ON BANK LEVIES FOR DISCUSS AT ECOFIN ON 7 SEPTEMBER 2010

Checking the table and especially the targetted revenues from the bank tax in countries as diverse as Germany and Hungary bulldozers will be needed to create a playing field.


  • Germany won't feel €1 billion in revenues very much.
  • France gives a range of €300 million to €1 billion in expected revenues.
  • Sweden's goal to get revenues equalling 2.5% of GDP sounds like another nail in the coffin of that recovery-coffin parked in the halls of the EU. 
  • Hungary's target of revenues of arounf 0.7% of GDP won't help the far-away recovery either.
  • The UK wants to raise STG 2.5 billion.
This guarantees one thing: An avalanche of headlines but no real progress.

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