After a two-year successful campaign to implement a Financial Transaction Tax (FTT), the PES will now follow-up the official announcement by the European Commission of a European FTT, to be implemented in the years to come. The proposal by the Commission is a good first step, but many loopholes remain in the draft directive..
What is it?
The FTT is a tax levied on all financial product transactions; every time a financial product is bought or sold, a very small proportion of its price (0.05%) is collected.
By applying a FTT in Europe:
- up to €200bn per year would be collected
- speculation would be discouraged
- the ones who caused the crisis and were bailed out would pay for the damage they caused
Cheap and easy to implement
Financial transactions are done electronically so a FTT is easy and cheap to collect: all fees and transaction costs are levied directly. As simple as adding a line of computer code.
More than 1000 PES members of parliament have called for a FTT to be implemented
Europeans for Financial Reform (EFFR)
The PES is working with Europeans For Financial Reform to establish a FTT. EFFR is a coalition of progressive forces, including: the Global Progressive Forum (GPF), ETUC, ITUC, UniGlobal Union, Solidar, the Global Progressive Youth Forum and the Foundation for European Progressive Studies (FEPS).
The EFFR also collaborates with the 'Robin Hood Tax', a platform advocating taxes on the financial sector in the UK.
Actions:
The PES organized a European Action Day for a FTT on 24 April 2010.
Other actions included:
- Launch of the campaign 'Regulate Global Finance Now!', September 2009
- Conference on a Financial Transaction Tax, 15 March 2010
- EFFR coalition calls on EU finance ministers to adopt a FTT, 7 September 2010
- PES supports German coalition for a Financial Transaction Tax, 14 September 2010
- No to austerity: PES marches for a FTT, 29 September 2010