EU REFORMS: Merkel and Macron's plot to bring hated Tobin Tax back
ANGELA Merkel and Emmanuel Macron are plotting to revive the highly criticised Tobin Tax as part of their wide-ranging plans to reform the Eurozone.
Angela Merkel and Emmanuel Macron want to revive the Tobin Tax as part of their Eurozone reform
The Tobin Tax, first proposed in the
early 1970s, is a levy on international financial transactions,
especially speculative currency exchange transactions.
The plans to revive the tax are part of a joint paper drawn up in view of the EU summit in Germany at the weekend by the German Chancellor and French President, who met to thrash out the details during a meeting at the castle of Meseberg last week.
The document reads: "Germany and France think that a tax on financial transactions is the right tool for additional taxation of the financial sector.
"We aim to bring the negotiation to a European Union level. We want to discuss with our European partners so that we can move forward and successfully close the process quickly."
The plans to revive the tax are part of a joint paper drawn up in view of the EU summit in Germany at the weekend by the German Chancellor and French President, who met to thrash out the details during a meeting at the castle of Meseberg last week.
The document reads: "Germany and France think that a tax on financial transactions is the right tool for additional taxation of the financial sector.
"We aim to bring the negotiation to a European Union level. We want to discuss with our European partners so that we can move forward and successfully close the process quickly."
According
to the country’s leaders, “the model should be that of the tax of
financial transactions currently in force in France, whose primary focus
is to tax transactions involving shares issued within the country”.
The EU started introducing a tax on financial transactions from 2011 - the same year as the Italian debt crisis took a stranglehold on the country.
Since then, only France and Italy have introduced the Tobin Tax, which has always been heavily opposed by Britain.
With the UK’s decision to exit the bloc, even the biggest supporters of the tax on financial transactions had started to cool their enthusiasm for it.
The EU started introducing a tax on financial transactions from 2011 - the same year as the Italian debt crisis took a stranglehold on the country.
Since then, only France and Italy have introduced the Tobin Tax, which has always been heavily opposed by Britain.
With the UK’s decision to exit the bloc, even the biggest supporters of the tax on financial transactions had started to cool their enthusiasm for it.
On the back of Brexit,
many had hoped for an end to the Italian tax on financial transactions
but now that France and Germany are trying to revive it, the financial
landscape may once again dramatically change.
This proposal from Ms Merkel and Mr Macron comes after it was revealed that 12 out of the eurozone’s 19 member states are critical of a Franco-German budget proposal.
The plan, mainly advocated by the French President, was endorsed last week by German Chancellor Angela Merkel as they campaign for a €25 billion Eurozone kitty to help finance crumbling member states.
But criticism of the plan has been expressed in an email from Dutch Finance Minister Wopke Hoekstra to Eurogroup President Mario Centeno, co-signed by 11 other Finance Ministers.
This proposal from Ms Merkel and Mr Macron comes after it was revealed that 12 out of the eurozone’s 19 member states are critical of a Franco-German budget proposal.
The plan, mainly advocated by the French President, was endorsed last week by German Chancellor Angela Merkel as they campaign for a €25 billion Eurozone kitty to help finance crumbling member states.
But criticism of the plan has been expressed in an email from Dutch Finance Minister Wopke Hoekstra to Eurogroup President Mario Centeno, co-signed by 11 other Finance Ministers.
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