Financial transaction tax and EU budget own resources
Commission's win-win plans get backing of Greens
EU budget commissioner Lewandowski today outlined proposals in the context of the forthcoming Multiannual Financial Framework (MFF), including plans to use part of the revenue from an EU-wide financial transaction tax (FTT) to fund the EU budget. The Commission was presenting its proposals at a high-level interparliamentary conference on the Multiannual Financial Framework. Commenting in the context of the conference, Green budgetary spokesperson Helga Trüpel (Germany) stating:
"The proposals by the Commission would kill two birds with one stone: introducing a financial transaction tax would ensure the financial sector finally shoulders its fair share in terms of contributing to public finances; using part of the revenue from an EU FTT to fund the EU budget would also reduce the burden on the national exchequers of EU member states by reducing their contribution to the EU budget.
"The Greens welcome the proposal to use FTT revenues as part of a system of own resources for the EU budget. The Commission has suggested that two-thirds of the revenues from an FTT should go towards the EU budget, which would lead to a 50% reduction in the contributions from national exchequers to the EU budget. The ball is now in the court of national parliaments and governments and we hope they will ensure this win-win solution becomes a reality."
Dutch Green MEP Bas Eickhout added:
"The financial sector is the least taxed economic sector and does not sufficiently contribute to the investment needs we have at both European and national level. Introducing an EU FTT and channeling part of the revenues towards the EU budget will help us raise urgently-needed funds to finance the EU2020 Strategy, while at the same time facilitating debt reduction at national level. By using the residence principle, the Commission has also taken into account concerns regarding possible evasion from one financial hub to another. The Commission's proposals make total sense and only those blinded by ideology could fail to accept this."
