| Barroso announces introduction of Financial Transactions Tax |
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According to Barroso, the EU was facing the “greatest challenge” since its existence that needed further co-ordination and regulation if the EU was to survive the current Euro crisis. “It was an illusion to think that we could have a common currency and a single market with national approaches to economic and budgetary policy. Let's avoid another illusion that we can have a common currency and a single market with [a nationalistic approach]”, Barroso stressed. Upholding the importance of the EC as an “independent authority” over national interests, he warned against the dominance of the European Council and Council of Ministers that “could be the death of a united Europe”. In order to strengthen ties within the EU, further changes in the EU treaties may be necessary, the EU high official stressed. “I am also thinking particularly of the constraint of unanimity. The pace of our joint endeavour cannot be dictated by the slowest”, Barroso announced. “A member state does not have the right to block the moves of others, the others also have their national sovereignty and if they want to go further, they should go further”. Barroso also announced a proposal for a so-called Financial Transactions Tax (FTT) to be discussed by EU Ministers on 4 October. The EC proposal sets out a tax on a broad range of financial transactions ranging from stocks and shares to futures and derivatives in organised markets and over-the-counter trading that shall not only create additional revenue but also make the banking sector contribute its share to society, the EU high official stressed. “If our farmers, if our workers, if all the sectors of the economy from industry to agriculture to services, if they all pay a contribution to the society also the banking sector should make a contribution to the society”, he said. The proposal for the tax was welcomed by European development NGOs that have been actively advocating the introduction of the FTT. According to Bernd Nilles, Secretary General of CIDSE, “an important victory for justice and solidarity is in sight. The Commission has made a good serve and now the ball is in the court of EU member states. They must make it game, set, match by backing the tax”. The proposal for the FTT is made by the EC as part of its reform of the EU’s multi-annual budget that was set out in a recent Commission Communication. The EC sees the FTT as a feasible way to generate “own resources” for the EU budget thus reducing the level of dependency on contributions from member states. Not all member states are happy with the idea, with strong opposition being expressed from the United Kingdom because of London’s role as a principal financial centre of the EU. For development NGOs concerns remain on how FTT revenues would be used. “For the FTT to work for people and the planet, the money should not only end up in the black hole of budget deficits. The case for an FTT has been built up on promises made to tackle poverty and climate change — this funding must be secured,” said Nilles. Read the full State if the Union speech here: EUROPA - Press Releases Sources:  |
In his state of the Union speech held to the European Parliament (EP) plenary session (27 September), European Commission (EC) President José Manuel Barroso warned EU member states (MS) from turning their backs to the EU and to stay together in the fight against the Euro crisis.
