Financial Transaction Tax (FTT) campaigners welcome support but emphasize that the revenues should be used to tackle poverty and climate change.
Brussels (4 July 2011) – The European Commission has proposed an European Union-wide Financial Transaction Tax (FTT - often referred to as a Robin Hood Tax) to fund its next long-term budget.
Trade unions, international development agencies and other campaigners welcomed the Commission's support for an FTT but repeated that their preference would be that the revenues should be used to tackle poverty and climate change.
The Commission is proposing a FTT to be implemented by 2018 with a legislative proposal to be introduced in the Fall that will set the minimum rate for the FTT.
Natalia Alonso, Oxfam International's EU head of office, said that "it is great news that the Commission has joined the millions of ordinary Europeans who want the financial sector contribute more to society. But this tax will only win popular support if the revenue is used to tackle poverty and climate change - not if it disappears into the general EU budget."
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.
The FTT involves a tax of a fraction of a per cent 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.
The National Union of Public and General Employees (NUPGE) has been actively campaigning for the implementation of the Robin Hood Tax. While the Harper government has rejected the proposal in the past it is hoped that their position will change as a result of the growing international support.
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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