$605 trillion of derivatives speculation in 2010 – it’s time the finance markets paid their way in global economy, says international union body.
Brussels (23 June 2011) - On June 23rd, unions and NGOs held actions around the world in support of a Financial Transactions Tax (often referred to as the Robin Hood Tax). The International Trade Union Confederation (ITUC) called on decision makers in government to act to implement the tax as soon as possible.
The tax is getting increasing political support, including a unanimous vote for the tax in Brazil’s parliament and a call by European Commission President Manuel Barroso for the EU Summit on 23-24 June to put the issue on its agenda.
The total value of financial derivatives reached $605 trillion – about 10 times global GDP – in 2010, according to the OECD. Derivatives are virtually untaxed and banks often avoid paying tax on profits from selling derivatives.
“It was this speculative money that was one of the major drivers in the financial collapse in 2008, but as an industry it continues to grow, without delivering anything back to the real economies of national governments,” said General Secretary of the ITUC, Sharan Burrow.
“A simple tax on financial transactions would generate billions of dollars that could be used to create decent jobs, tackle global poverty and fund action on climate change. It’s time the banks stopped getting a free ride on the backs of working people and start to pay for repairing the damage they have caused to the economy,” said Burrow.
The unions argue that the initiative, which would involve a tax of a fraction of a percent on transactions, would also dampen financial speculation, one of the main drivers of the recession that started in 2008. It would also not apply to the overwhelming majority of citizens.
Demand for the Robin Hood Tax will be at the top of trade union demands for the this year’s G20 Summit in November, hosted by France. French President Nicolas Sarkozy has been a vocal supporter of the tax.
NUPGE
The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE
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