The future of Europe, and our level of ambition for Health, Climate and Jobs in the next 7 years, will be decided in the next few days.
How to agree on a sustainable recovery ?
Negotiations for a more ambitious EU budget capable of ensuring both a massive and green recovery and of bridging the green investment gap estimated by the European Commission at over €600bn per year are currently blocked.
Why? Because some countries refuse to pay a higher contribution to the EU budget, and refuse solutions to repay the common debt together.
What’s the solution? The introduction of a Financial Transactions Tax can bring in over €50bn to the EU budget for a green and fair recovery!
By introducing new EU own resources, the EU will rely much less on national budgets and it will be able to reimburse itself the debt taken upon during the Covid19 crisis.
Ask the European Council for a Tax on Financial Transactions to finance the European Green Deal.
Let’s make our voices heard !
Send a tweet to your head of government by clicking on their name below.
When you bought the phone or computer you are currently using, you paid at least 15.5% VAT. And even for basic food items, even the most vulnerable among us have to pay 5.5% VAT. Everyone has to pay 5.5% VAT to contribute to the collective effort. But for those who buy shares on financial markets, the tax is currently 0.0%. How do we explain this 0.0% rate to the citizens? Are stocks and bonds even more essential to life than food?<
This is why the EU should finance its Recovery Plan with a tax on financial transactions! The legislative act is ready. By taxing only 0,1% stocks and 0,01% derivatives and bonds, we could collect every year over 50bn euros!!
“Even after Brexit and in an economic crisis, a Tax on Financial Transactions could raise 57 billion € / year”
The countries which are currently blocking a more ambitious budget would be more open to it if they knew how it will be paid for, without asking 1€ more from national budgets, nor from most citizens.
Germany, Denmark, Poland, Portugal, Italy, France… Very different countries seem ready to agree with this proposal. All EU countries which want to join the group supporting the FTT will have a solution to repay their share of the joint debt
This is why we need you to call out to your national leader, and tell them you demand a Sustainable EU Recovery Plan for climate & jobs, financed with a tax on speculation!
What makes us think this could actually succeed ?
The German Development Minister Gerd Müller (CSU) said he supports a Financial Transaction Tax (FTT) that can raise 60 billion € per year. 10 times more than the digital tax or the plastic tax. He commissioned a study that showed, in March 2020, what a solid FTT looks like.
Angela Merkel said the FTT must be part of the solutions to fund the recovery. And the FTT is Identified as one of the priorities of Germany’s EU presidency in the program released on 1 July.
The German Finance Minister, Olaf Scholz, said in April that he sees an agreement in the « near future », and asked the Commission to open the FTT to more countries than the 10 which are currently negotiating it in enhanced cooperation. So each country can decide if they want to opt in to this solution to repay the recovery plan without spending 1 more € from their national budget.
Austria’s Finance Minister Gernot Blümel also criticized an FTT that would be too weak, that would not target high-frequency trading and derivatives. He warned that Austria could leave the group of countries currently working on a joint FTT if this weak proposal is pushed forward.
The FTT is a quite popular proposal in Europe (64% of citizens support it), in Germany (82%) and in a number of “frugal” countries. For instance in Denmark: 56% of the people support it, while only 37% oppose it.
The momentum for Round 3 on the FTT is now
After years of campaigning, a first FTT proposal was obtained. Poul Rasmussen, former Prime Minister of Denmark, was proud of the work achieved to, as he said, “win round 1 (Parliament) and 2 (Commission) to obtain support for the FTT, now let’s win round 3 in the European Council”.
In 2020, when all our countries are looking for ways to finance recovery plans, €50 bn would be particularly welcome.
And other countries that were not part of the initial FTT group are moving: this year, for the first time, the Prime Minister of Poland wrote an opinion in the Financial Times supporting 3 new EU own resources, including the FTT.
If we convinced Barroso, we can convince Merkel, Macron and their colleagues
In September 2011, the European Commission has proposed a Directive to create a small tax of 0.1% on financial transactions.
Could such a Financial Transaction Tax really raise revenues in the context of this current crisis? Yes. During this Spring of 2020 the European Economy is in a deadlock. The volumes traded in March-April 2020 were 45% higher than in 2010 (the year of reference for the figures of the Commission quoted below). In a time of crisis, volatility is high but traded volumes are high as well.
“EU Member States have committed € 4.6 trillion to bail out the financial sector during the crisis”, stated the European Commission on 28 September 2011. “The financial sector enjoys a tax advantage of approximately €18 billion per year because of VAT exemption on financial services. A new tax on the financial sector would ensure that financial institutions contribute to the cost of economic recovery and discourage risky and unproductive trading.”
Even after Brexit and in a context of crisis, a small tax based on this Directive could raise 57 billion € per year. 10 times more than the digital tax. The European Commission stated that this tax can be introduced in less than 2 years.
With €50 bn every year, the Financial Transaction Tax (based on the proposal of the European Commission from 2011) can raise
- 15 billion to repay the EU Recovery Plan without taking 1 € more from national budgets
- 35 billion € every year for the green transition of Europe for which the investment gap was estimated at €600bn per year.