Euro Zone Split over Financial Transaction Tax

European finance ministers discussed the proposed EU financial transaction tax on the 13 March 2012, but Member States were divided on the issue. Not even Germany and France's plan B, to only introduce the tax in the euro zone, had much chance of success. Key euro-zone members such as Luxembourg, Ireland and the Netherlands were afraid of losing out, while countries such as the United Kingdom and Sweden were opposed unless a form of FTT could be introduced globally.

The FT reported on the 14 March 2012 that a Europe-wide stamp duty on share transactions emerged as a potential compromise proposalas a way of sidestepping the deadlock over the plans for a financial transaction tax.

• Primary Source

ESO: Background information: Nine EU countries form splinter group on financial tax http://www.europeansources.info/record/nine-eu-countries-form-splinter-group-on-financial-tax/

ESO: Background information: Barroso backs transactions tax http://www.europeansources.info/record/barroso-backs-transactions-tax/

ESO: Background information: Opposition presses Merkel on transactions tax http://www.europeansources.info/record/opposition-presses-merkel-on-transactions-tax/

EurActiv, 13.3.12: Germany seeks to flush out positions on financial tax http://www.euractiv.com/euro-finance/germany-seeks-flush-positions-transactions-tax-news-511473

European Commission; DG Taxation and Customs Union; Taxation: Other taxes: Financial Sector: Taxation of the financial sector http://ec.europa.eu/taxation_customs/taxation/other_taxes/financial_sector/index_en.htm

EUObserver, 13.3.12: EU countries as divided as ever on finance tax http://euobserver.com/19/115577

Deutsche Welle, 13.3.12: Ministers split over financial tax at Brussels meet http://www.dw.de/dw/article/0,,15806606,00.html

Council of the European Union: Press Release: PRES/12/102; EcoFin Council, Brussels, 12.3.12 http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/128932.pdf

Deutsche Welle, 14.3.12: EU at loggerheads over financial transaction tax http://www.dw.de/dw/article/0,,15807110,00.html

EurActiv, 14.3.12: Ministers to mull alternative to Tobin tax http://www.euractiv.com/euro-finance/ministers-mull-alternative-tobin-news-511495

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