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THE EUROPEAN COMMISSION has agreed to introduce the first step in bringing a financial transaction tax (FTT) to ten EU member states.
It has been estimated the tax could yield as much as €57 billion if introduced on a EU-wide basis – but concerns remain in Ireland that its introduction could undermine its competitiveness and see jobs transferred to the UK and other countries.
However, France, Spain, Germany, Italy, Greece, Portugal, Belgium, Austria, Slovakia and Slovenia have all supported the introduction of an FTT. The states are to introduce the tax using the little-used procedure of “enhanced cooperation”, which allows a minimum of nine members states to pioneer new legislation when the EU-27 failed to reach unanimity.
The concept of the tax was first put forward in the 1970s by US Nobel laureate James Tobin, who advocated taxes on transactions to curb market volatility.
Ireland’s Finance Minister Michael Noonan has ruled out Ireland introducing an FTT – saying that such a move would potentially see Ireland lose jobs to the UK, where the tax will not be introduced.
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This is bad news for Ireland, it always amazed me how Britain gets away with there status in Europe. They don’t want to accept rules or fiscal plans laid out by Europe or get involved regarding the currency but they gain all the perks that are only suppose to benefit European countries.
They are not part of the Euro for a start;they use their veto for the benefit of their citizens,they also only ratify treaties that are suitable for them.Finally they don’t feel the need to do the bidding of France or Germany to be treated like attention seeking children.
What perks are we talking about Mr Know?Britain bunged us 7 billion at a very favourable interest not so long ago. They’re the best friend Ireland has. Remember that before you make disparaging comments about them.
Their status. Not there.
Norway are not even members and they get most of the perks, with none of the drawbacks. I’m not advocating that we exit the EU merely expressing my derision of States that seem to be playing from a different rule book than us.
Britain pay over 9bn a year into EU. FTT is complicated , in essence designed to raise money on transactions and is seen as a way of generating some money from the financial sector (allegedly to make them pay their share for the financial crisis ) , as the UK are staying out ,there is some risk to jobs in the financial sector in Ireland , although the EU have now introduced it in a way that means the tax on the transaction applies regardless of where you locate the trader to reduce the fear or jobs migrating. Ireland is not against the principle but is holding out due to the UK position , there is money generated for participating countries- but in Ireland we already pay a tax on trades which would be replaced by FTT .Many fear that if it works it could be the beginning of a road to euro taxation harmony down the road- something we don’t want as our low corporate rates might then be scrapped obviously making us less appealing to FDI etc….
It’ll be brought in yet anyhow. Either by consensus of the government in exchange for something else, or forced upon us by the EU because they have our best interests at heart…. And we ARE a special case ! ! !
Yes indeed a basket case.
Finally democracy takes some control of the predatory banks. All should implement this measure as a moral imperative. Let’s hope this spreads and becomes the norm.
Rothschilds foaming at the mouth
No chance of this coming in here for the simple reason that the banks make banking policy in Ireland, not Noonan.
I thought that was a movie poster for Hitchcock
Banana republic.
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