While Member States and the European Parliament are currently negotiating the future EU budget, the Commission has presented figures on possible savings from a financial transaction tax (FTT). This highly controvertial tax, has won backing from some member states, the European Parliament, and civil society has been calling for its use.
Member states will pay 50 percent less into the general EU budget by 2020 if they agree to implement a financial transactions tax said at a conference with national parliaments on the EU having its own resource. In order to sway the opinion, EU budget commissioner Janusz Lewandowski put some concrete savings figures on the table.
EU commission President Jose Manuel Barroso is confident that when member states see in “concrete terms” the savings that can be made “some who have been sceptical will probably change their position.”
By the commission’s estimates total savings would amount to €81 billion, Germany would pay €10.7 billion less into the EU budget from 2014- 2020, Poland €1.8 billion, Italy €6.4 billion and Latvia €81 million. Even many countries with strong financial industries could benefit the Commissioner argued. The UK, the Netherlands and Sweden would save €7.6bn, €2.6bn and €1.6bn respectively. The Commission presented these figures to deepen the debate.
The FTT is a key element to the Commission proposal for a future EU Budget unveiled in June last year. The FTT and a five percent increase in the total budget had been quickly rejected by some member states. In February nine member states wrote to the Danish Presidency urging them to accelerate work on the FTT: Germany, France, Italy, Spain, Belgium, Austria, Portugal, Finland and Greece.
The FTT would place a 0.1 percent tax on stock and bond trades and 0.01 percent on derivatives. Of the finances levied one third would go to national budgets and two thirds (€54 billion) to the EU budget.
Over 70 NGOs wrote to the Danish Prime Minister prior to the ECOFIN Council of the 08 Marc. In their letter, they welcomed the progress achieved by the Danish Presidency and argued that many of the arugments against the FTT are “unfounded.” They highlighted that civil society around the world have been calling for a FTT that would generate significant public revenues to finance the fight against poverty at home and in developing countries and policies to combat climate change and contribute to better regulation of European financial markets for a number of years.