Economy

Finance: MEPs approve the Tobin tax

24 May 2012
Presseurop
La Tribune, The Daily Telegraph

While the leaders of member countries were meeting in Brussels at an extraordinary summit on growth, the European Parliament approved the tax on financial transactions, known as Tobin tax, by 487 votes (152 against, with 46 abstentions). “The joint resolution of Parliament – whose opinion on the subject is only advisory – approves a proposal from the European Commission presented in September 2011,” reports La Tribune, mentioning that it will not come into force before the end of 2014. For the French business daily –

The Commission plans to impose a tax on financial transactions throughout the EU, at a rate of 0.1 percent on stocks and bonds and 0.01 percent on other financial products. [This] “could generate up to 57 billion euros, if applied across the EU.

Which is not a sure thing, the paper notes –

Nine countries, including Germany and France, are defending bringing in the tax, but others, like Britain, are opposed because they fear it will provoke financial activities to relocate.

Britain’s Prime Minister has also erupted in “fury” at the summit, writes the Telegraph, quoting David Cameron –

The Financial Transactions Tax is a bad idea. It will put up... the cost of people's pensions, it will cost many, many jobs. It will make Europe less competitive and I will fight it all the way.