Vote For EU Finance Tax
Friday 25th February
GMB CALLS ON BRITISH MEPS TO SUPPORT AN EU WIDE
FINANCIAL TRANSACTION TAX IN VOTE IN EUROPEAN PARLIAMENT IN
MARCH
Such a tax would change the financial system for the
better and would demonstrate to citizens that politicians are
taking steps to ensure that lessons are learnt from the crisis
caused by the bankers says GMB
GMB has urged British Conservative, Liberal, Scottish
Nationalist and Plaid Cymru MEPs to support the introduction of an
EU financial transaction tax(FTT) in a vote when the issue comes
before European Parliament next month. Labour and Green MEPs are
strongly backing the proposal which will be voted on in the next
Strasbourg plenary session on 7th-10th March
2011.
Paul Kenny GMB General Secretary in a letter sent today has
urged MEPs to support amendments from Socialist Group to a report
from Parliament’s Economic and Monetary Affairs Committee on
innovative financing to be debated during the plenary. These
amendments call for a financial transaction tax to be implemented
at European level. (See text of letter in notes to Editors)
Theoriginal report oninnovative financing was drafted for the
Parliament’s Economic and Monetary Affairs Committee by Greek
Socialist MEP Anni Podimata and included the proposal for an EU
FTT. However, conservative and liberal MEPs on the Parliament’s
Economic and Monetary Affairs Committee voted to remove the
inclusion of the FTT from the text. The Socialist Group have
therefore decided to re-table the proposal for the plenary vote,
meaning that the Parliament as a whole will have the final say on
an EU FTT.
Following the Parliament’s vote, the European Commission will
publish an impact assessment on innovative financing. Socialist
MEPs are calling on the Commission to consider the possibility of
an FTT more seriously, rather than its preferred choice of a
Financial Activities Tax which they criticise as being a softer
option.
Paul Kenny says in his letter “The introduction of an EU
FTT would not only be revenue-raising, it would also curb
speculative, “socially useless” activities and encourage long-term
investment. Such a tax would change the financial system for the
better and would demonstrate to citizens across Europe that
politicians are taking steps to ensure that lessons are learnt from
this crisis.
Ideally, we would all want to see a global level FTT,
but if insufficient progress is made through the G20, the momentum
should be galvanised by introducing the tax at EU level. As the
biggest financial market in the world, it makes sense that the EU
should lead the way as a pioneer by introducing an
FTT.
Europe cannot afford to look back and see this as a
missed opportunity to create a positive dynamic to Europe’s economy
and sustainable development worldwide. There is strong and sound
evidence that the implementation of an FTT is not dependent on a
global agreement. A well-designed, low-level tax at EU level would
avoid the creation of any risk in terms of competitiveness, and
would not scare the financial markets out of Europe, as many
opponents of the FTT try to claim”
End
Contact: Kathleen Walker Shaw 07841 181 549 or
0032 2 230 5675
Notes to Editors Text of GMB letter to all British MEPs
EU Financial Transaction Tax
Over two years have passed since the beginning of one of the
worst global economic and financial crises. Politicians
across Europeare perhaps prematurely beginning to talk about
recovery, whilst European citizens, including your own
constituents, continue to feel the effects of the economic turmoil,
and many are worried that the worst is still to come. They are
further concerned that the financial sector appears to be back to
‘business as usual’, despite the major role it played in causing
the crisis.
There is a strong consensus among citizens that not only
should the financial sector assume responsibility for repairing the
damage it was central in causing, but also that politicians should
act immediately and decisively in making sure that such a crisis
will never occur again. GMB is certainly not alone in asserting
that an EU financial transaction tax could contribute to fulfilling
both of these aims, as part of a comprehensive package of financial
regulation.
For voters, this is not merely a desire to see the banks
punished. More importantly, they want to be able to trust and have
confidence in the financial sector, which will require a major
change of attitude across the entire sector. The introduction of an
EU FTT would not only be revenue-raising, it would also curb
speculative, “socially useless” activities and encourage long-term
investment. Such a tax would change the financial system for the
better and would demonstrate to citizens across Europethat
politicians are taking steps to ensure that lessons are learnt from
this crisis.
Ideally, we would all want to see a global level FTT, but if
insufficient progress is made through the G20, the momentum should
be galvanised by introducing the tax at EU level. As the biggest
financial market in the world, it makes sense that the EU should
lead the way as a pioneer by introducing an FTT. Europecannot
afford to look back and see this as a missed opportunity to create
a positive dynamic to Europe’s economy and sustainable development
worldwide. There is strong and sound evidence that the
implementation of an FTT is not dependent on a global agreement. A
well-designed, low-level tax at EU level would avoid the creation
of any risk in terms of competitiveness, and would not scare the
financial markets out of Europe, as many opponents of the FTT try
to claim.
I therefore ask you to listen to the concerns of your
constituents and vote in favour of amendments to the Podimata
report on innovative financing which re-introduce the proposals on
an EU FTT. I am convinced that in order to learn from past
mistakes, we must ensure that the attitude of financial
institutions is ‘never again’ and not ‘business as usual’.
GMB supports a financial transaction tax at EU level as a
first stage in stimulating a global initiative and I urge you to do
the same in March’s plenary session.
Yours sincerely,
PAUL KENNY
GENERAL