Breakaway eurozone members push for financial transactions tax

The Labour Party's delegation in the European Parliament voted consistently against the Financial Transactions Tax during the plenary voting  session back in May 2012.

The Labour Party still maintains that such a tax will damage the financial sector in Malta and will affect the country's economy.

"This tax will have a strong impact on a country that has a strong financial sector that employs thousands of people. The European Commission's proposal threatens the jobs in this sector".

"Such a levy should be applied on a global level so it will not be harmful on countries that will be affected negatively," PL said.

 According to Deutsche Welle, a group of 11 eurozone members wants to push ahead with a financial transactions tax (FTT) even if the rest of the EU does not, in a plan it is hoped will raise billions in revenues.

The paper says EU finance ministers rejected an FTT in March, with Sweden and the UK refusing to back it due to concerns it would endanger their economic growth, while in the eurozone, Luxembourg and the Netherlands shared similar concerns.

The FT reports that the Franco-German led drive for an FTT - which has also gained the support of Italy, Spain and Slovakia - could leave many of Europe's largest stock markets under the tax, while competitors like London and Warsaw would be outside the scheme.

While the commission has proposed a 0.1 per cent tax on stocks and 00.1% on derivatives, the 11 countries will only use that as a template and could revise the rates and have yet to decide what will be done with the revenues, says the paper.

According to the Irish Times, EU taxation commissioner Algirdas Šemeta hopes to present FTT legislation for the 11 eurozone members to finance ministers at their next monthly meeting, which his office estimates could raise €57bn per year if adopted across the whole EU.

The paper reports that, while an FTT must still be approved by qualified majority voting, large non-participants in the scheme, such as Poland and the UK, have signalled that they will not attempt to form a blocking minority.