Transactions Tax Plans Unravel Into 2016 as Governments Clash

Bloomberg

Transactions Tax Plans Unravel Into 2016 as Governments Clash

Plans for a European tax on financial trades fell into disarray as member states argued about its impact on world markets and clashed over threats of legal action.

Instead of sealing a deal on Tuesday in Brussels after months of preparation, EU governments kicked the proposal to mid-2016 as fresh worries erupted over the economic and political consequences of the levy. The group of countries seeking to introduce the financial-transactions tax said they needed more time to assess the impacts as Estonia withdrew its support and Britain reignited a threat to file a lawsuit should the plan ever materialize.

“The text on FTT isn’t clear, maybe vague,” said Italian Finance Minister Pier Carlo Padoan after a meeting with his 27 counterparts. “We have, however, reached a text to establish political will.”

The EU’s inability to get a deal after more than four years of negotiations highlights the potential limits to deeper European integration following concern about economic sluggishness and a surge in anti-euro forces from Paris to Athens. Member states supporting the levy hope it will raise revenue and limit market speculation as part of the regulatory landscape intended to reign in investment banks after the financial crisis.

Ja jälle “raise revenue”.

About Kristjan

Defitsiidi terrorismi vastase pataljoni eriüksuslane (finantsignorantsuse vastu võitlemise osakond). Treening: MMT, postkeinsism, Tartu Ülikool Majandusteadus
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