1/4% Tax on all stock trades pushed in NY Times today

The good news is that FTT is officially dead at the EU 27 level, even Semeta admitted that.

After watching the ECOFIN meeting I got the feeling they may just be able to get 9 to agree on something.

Whether that something will be just 0.1% stamp duty on stocks.. or on everything (stocks, bonds and derivatives) I dont know, most likely only stocks.
They would be foolish to include derivatives as trading of those will just move to London, and they must know that.
 
European Transaction-Tax Debate at Crunch Point - WSJ.com
http://online.wsj.com/article/SB10001424052702304765304577482190886805120.html

Top left online. My Comment

Enhanced cooperation on FTT with 9 eurozone countries will indirectly tax the dissenting 8 eurozone countries and other EU countries that say no to FTT. That sounds illegal to me under EU and eurozone treaties. If Germany proposes that the UK and Sweden accept a FTT and they veto it, it must be viewed as illegal for Germany to explode an enhanced cooperation of 9 FTT on London, where 70% of FTT taxes will be paid.

This potential illegal violation of tax sovereignty will break the EU apart. Yes, there is a huge crisis, but taking advantage of it to federalize from Brussels and trample on sovereignty is not the answer.
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PS. The EC9 will want reach on their FTT to explode in London, but that's going to be overreach under treaties I presume - let's find out. Without reach, they lose tremendous business to London who already has the dominant market share making their FTT a fiscal cliff. If they downsize to stamp duty, it's still very bad because they don't have Contracts For Difference CFD to trade in lieu of shares as they do in the UK. Most of the EC9 are meaningless countries to global finance.
 
Quote from Robert A. Green:


Top left online. My Comment

Enhanced cooperation on FTT with 9 eurozone countries will indirectly tax the dissenting 8 eurozone countries and other EU countries that say no to FTT. That sounds illegal to me under EU and eurozone treaties. If Germany proposes that the UK and Sweden accept a FTT and they veto it, it must be viewed as illegal for Germany to explode an enhanced cooperation of 9 FTT on London, where 70% of FTT taxes will be paid.
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We dont know the scope of the EC FTT yet. If its only a stock stamp duty (like France just did) then it doesn't really effect anyone else. And the UK, Ireland both have stamp duties anyway so i think it would be hard to veto such a narrow EC FTT.
 
Quote from southall:

We dont know the scope of the EC FTT yet. If its only a stock stamp duty (like France just did) then it doesn't really effect anyone else. And the UK, Ireland both have stamp duties anyway so i think it would be hard to veto such a narrow EC FTT.
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Yesterday in the german newspapers it sounds like they want to tax everything:
Stocks, Derivate, CFDs and Currencies (for the EC FTT)
 
Quote from southall:

We dont know the scope of the EC FTT yet. If its only a stock stamp duty (like France just did) then it doesn't really effect anyone else. And the UK, Ireland both have stamp duties anyway so i think it would be hard to veto such a narrow EC FTT.
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Sounds right. We all know full well that UK's stamp duty is a Main Street tax, with exemptions for banks and market makers. Traders in the UK focus on non-taxed CFDs. As long as an EC9 modified stamp duty or FTT doesn't hurt traders in the US and around the world outside the EC9, is it a big problem for us? These countries may not have huge internal trading markets to upset? The key is not allowing their version of transaction taxes to be exported. Most local country stamp duty rules are a non-concern to US traders. Yes, we keep fighting FTT in EC9 and we don't want a beachhead, but their FTT may hurt them and teach them a reality lesson. There's been a lot of debate and let them eat their own crud.
 
Didnt the EU parliament vote to exempt pension funds from the FTT proposals? Im sure some the 9 (if they can get 9) will still want that exemption for pension funds.

A limited scope FTT, say 0.1 stamp duty with pension funds exempt will not raise much money, as Pension funds are probably the biggest payers of the current duties in the UK and other places.

In the end i think a token EC FTT may happen and it will appease the socialist parties and socialist coalition partners in countries like Germany and France. They seem to be fanatical about the FTT.
 
Quote from southall:

Didnt the EU parliament vote to exempt pension funds from the FTT proposals? Im sure some the 9 (if they can get 9) will still want that exemption for pension funds.

A limited scope FTT, say 0.1 stamp duty with pension funds exempt will not raise much money, as Pension funds are probably the biggest payers of the current duties in the UK and other places.

In the end i think a token EC FTT may happen and it will appease the socialist parties and socialist coalition partners in countries like Germany and France. They seem to be fanatical about the FTT.
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EC9 FTT - a socialist glue for a socialist Europe. That's a recipe for further EU problems and certainly not success.
 
Quote from southall:

In the end i think a token EC FTT may happen and it will appease the socialist parties and socialist coalition partners in countries like Germany and France. They seem to be fanatical about the FTT.
More...

And we know where appeasement leads...
 
Germany Fin Min Schaeuble: 10 countries now support the financial transactions tax; conditions are in place for enhanced cooperation-

Reminder: earlier the Spain Fin Min commented that nine euro zone nations support the financial transaction tax



Headlines crossing a moment ago
 
EU-Wide Transaction Tax Blocked - WSJ.com
http://online.wsj.com/article/SB10001424052702304765304577482190886805120.html

EC9 modified FTT sounds very shaky to me. The law seems garbled here and not well tested yet. EC9 modified FTT will affect dissenters like the UK, Sweden and others and that's a problem for EC.

EC is for last resort use, only. This quick push for EU-wide FTT today was flimsy as the Swedish official said. The coalition of the willing has little room to spare and some may drop out with a firm no EU-wide vote and when they see the dirty details in the modified FTT plan, which is yet to be presented.

The UK and Sweden will cry foul - stepping on their toes - and that can be sufficient grounds to challenge EC.

EC9 is going to go legal and it will take a long time.

Yes, countries can do what France did on their own, but EC9 FTT is a tall task.

Merkel probably doesn't want FTT deep down and she is just buying time with her socialist oppossition, including Schaueble.

A fiscal compact and ESM approval can't wait for mumbled EC9 FTT. They gave it their best, and hopefully socialists won't now hold the fiscal compact and ESM hostage. Let's see.

UK PM Cameron won't sign the fiscal compact with FTT in and the Austrian PM won't sign it and the ESM with FTT out. Statemate and meanwhile the crisis grows.
 
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