Financial Transaction Tax, Again?

August 29, 2011 International Tax CooperationTaxation in EU

Francois BaroinFrance and Germany will once again take up the banner of global financial stability, with plans to re-propose the idea of a financial transaction tax at the upcoming G20 summit in November.

In an interview published by French media on August 28th the Finance Minister of France Francois Baroin said that representatives from the German and French governments are now working on a new proposal for a international financial transactions tax.
The Minister said that the governments of France and Germany are determined to see positive results and progress for their joint proposal before the end of the year. Technical details of the tax are expected to be finalized within a month, and be presented to the European Union by the end of September.

In the past the European Central Bank President Jean-Claude Trichet has said that having the approval of the USA and the UK would be especially important in seeing the proposed tax become a reality. In order to address this oft repeated concern, Francois Baroin says that the tax will be reintroduced at the G20 summit in the November of this year. The Minister said that he is determined to see positive results at the summit, and work towards implementing the tax would begin soon after.

Proposals for a financial transactions tax have been met with failure in the past, as too many European politicians oppose the idea. Financial institutions from across Europe have jointly maintained the opinion that in order for the tax to be effective, it would first need to be a globally approved system which enjoys support from governments across the world.

Photo by fondapol