Merkel Will Struggle to Pass Transaction Tax, Lawmaker Says
http://www.bloomberg.com/news/2012-...le-to-pass-transaction-tax-lawmaker-says.html
http://www.bloomberg.com/news/2012-...le-to-pass-transaction-tax-lawmaker-says.html
1/4% Tax on all stock trades pushed in NY Times today
- Thread starter seasideheights
- Start date
Magrethe Vestager, the Economy mininister of Denmark, is perhaps the farthest left politically of the all the politicians speaking out in recent days. She's an adamant supporter of the FTT -- but she says that an EU-only FTT would cost "hundreds of thousands of jobs" and therfore her party can only support the tax if it's global.
Merkel and Sarkozy have now positioned themselves out on a limb, to the left of Vestager, and will have a difficult time finding any countries that actually matter to join them in an FTT. Eleven countries seem to be against the FTT right now and with Demark coming out against it more countries could follow.
Sarkozy is insane, but I don't think Merkel is either crazy or stupid. She's got to be looking for a way to unhitch her wagon from Sarkozy before the wheels come off and everyone crashes. Blaming Germany's non-participation on her coalition partners may be her only avenue of escape.
If France, Austria, Belgium and handful of other countries institute the FTT, what will happen? It will probably fail like Sweden -- trading firms will exit to London, Geneva, etc., and very little revenue will be raised, probably less than what's lost in income and capital gains taxes producing a net loss for the countries' treasuries. Would another FTT failure really be such a bad thing?
Merkel and Sarkozy have now positioned themselves out on a limb, to the left of Vestager, and will have a difficult time finding any countries that actually matter to join them in an FTT. Eleven countries seem to be against the FTT right now and with Demark coming out against it more countries could follow.
Sarkozy is insane, but I don't think Merkel is either crazy or stupid. She's got to be looking for a way to unhitch her wagon from Sarkozy before the wheels come off and everyone crashes. Blaming Germany's non-participation on her coalition partners may be her only avenue of escape.
If France, Austria, Belgium and handful of other countries institute the FTT, what will happen? It will probably fail like Sweden -- trading firms will exit to London, Geneva, etc., and very little revenue will be raised, probably less than what's lost in income and capital gains taxes producing a net loss for the countries' treasuries. Would another FTT failure really be such a bad thing?
That may be the official line but the Labour party leader Ed Milliband, sometimes called 'red ed' because of his left wing views said he would back the tax, even if it only went ahead in Europe.
He is owned by the Unions, who voted him in as leader, so his position on FTT is not at all surprising.
Miliband gives support on financial transaction tax:
http://www.moneymarketing.co.uk/pol...-on-financial-transaction-tax/1039021.article
Finland's finmin recently said they would do it with just France:
http://www.yle.fi/uutiset/news/2012...pports_financial_transaction_tax_3158124.html
In recent months I've seen/heard statements from Finance Ministers from Austria, Belgium, Finland and Portugal say they would support an EZ-only FTT.
An EZ-17 agreement isn't possible because Malta, Cypress, Ireland, Slovenia and the newly-elected government of Spain have said no. Netherlands looks like a no after their CPB report recommended against it. Italy says they'll only support it if it's EU-27 and Luxembourg is unlikely to participate unless the entire EZ-17 agree.
That leaves Austria, Belgium, Estonia, Finland, Greece, Portugal and Slovakia as possible EZ-FTT partners with France.
His support for this tax is as meaningful as that of the local grocery clerk. Neither are in a position to levy unpopular new taxes.
The tax situation in the UK is appalling for all but non doms and those with ludicrously complex affairs - former Prime Minister Blair paid less than 3% tax last year.
FTT in the UK is meaningless as if it was imposed there would need to be an exemption for all the cronies^H^H^H^H^H^H^Heconomically important City of London as they did with the Stamp Tax. The only people who would pay would be the Joe Public savers, investors, and pension holders. Likely the same ignoramuses who clamoured for a "tax on the greedy speculators". Poetic justice at its finest.
A coalition of the some-PIIGS desperatos, fringe-euro wanabees and Franco/German sycophants. Not a strong coalition of the willing, and not the nine needed for passage by a group within the euro zone.
Sarkozy just needs to win his re-election and out talk the Socialists over attacking banks. We prefer Sarkozy over the Socialists too.
I sense we are still winning this fight and FTT won't be passed in Europe.
The Finns and Estonians should listen to the Swedes even though they hate doing so. Didn't the Finn finance minister say EU or euro zone wide? That's code for don't count me on the list of those that will jump first. With a UK veto in place for no EU-wide chance, others don't need to take that type of heat from France and Germany - which surely would come.
http://www.yle.fi/uutiset/news/2012...pports_financial_transaction_tax_3158124.html
Finlandâs Finance Minister Jutta Urpilainen: âI hope the tax would be effective over the widest possible geographical area with the participation of several European countries. We need to agree on a tax model that other nations can accept. As a result France would not need to go forward solo on the issue.â
Sounds like Finland's in with France even if it's just a few countries.
A friend of mine who lives in Stockholm says that part of Finland's financial industry will move to Sweden if there's an EZ-FTT. They're already talking about it.