S&D MEPs secure final vote on Tobin tax in European Parliament

S and D MEPs secure final vote on Tobin tax in European Parliament

The Socialists and Democrats today won a big victory after securing a broad majority – 522 in favour, 141 against – in the European Parliament for the introduction of a financial transaction tax (FTT) in 11 EU member states*. 

The European Parliament is calling for a 0.1% tax on stocks and bond trades, and 0.01% on derivatives from January 2014.

Said Greek S&D MEP and negotiator for the European Parliament Anni Podimata:

"Today is a good day for European citizens; contrary to many predictions, the 'Tobin tax' is now on track.

"For three and a half years the European Parliament has maintained a consistent and coherent stance on the FTT.  It is an attitude that shows clearly that we consider the common European interest above all and the interests of European citizens, who are bearing the huge economic and social costs of the crisis.

"I hope the 11 member states involved will also show the same consistent and coherent attitude and move forward to launch the FTT.

"We want to make sure that the broad scope of the tax is maintained to ensure all financial products are covered, and all financial institutions and markets, organised or not.

"The wide scope of the tax – which covers all types of products, such as stocks, bonds and derivatives, on regulated exchanges and over-the-counter – coupled with low tax rates is the key element for making the tax a success.  By doing this we can avoid creating incentives for substitution, unequal treatment between markets, products and institutions, and drastically reduce the risk of tax avoidance."

*The member states proceeding with the financial transaction tax through enhanced co-operation are: Germany, France, Italy, Estonia, Spain, Greece, Slovakia, Belgium, Austria, Portugal and Slovenia.