Financial transaction tax proposal on the Council's table

On 8 November, the economic and financial affairs ministers took note of a presentation by the Commission of its proposal to tax financial transactions in the European Union.

© Fotolia

The Commission considers that its proposal for a financial transaction tax (FTT) would enable the financial industry, currently under-taxed in relation to other sectors, to make a fair contribution to the public finances. It would also create a disincentive for transactions that do not enhance the efficiency of financial markets.

The draft directive would cover transactions relating to all types of financial instruments, including capital market and money market instruments (with the exception of instruments of payment), units or shares in collective investment undertakings and derivative agreements. Transactions with central banks are, however, excluded.

The presentation of the proposal was followed by an exchange of views among ministers. The Ecofin Chairman, Polish Finance Minister Jacek Rostowski, invited the relevant Council working parties to start analysing the proposal.

EU decision-making on tax issues requires unanimity. 

More information:
Press release (pdf)
Council debate webcast
Press conference webcast
Taxation of the financial sector (on Europa server)