Skip to comments.Europe’s Tobin tax plan challenged by Italy, UK
Posted on 04/23/2013 3:35:16 PM PDT by Olog-hai
The proposal to introduce a tax on financial transactions (FTT)or Tobin taxacross a number of EU countries by January 2014 is under pressure as Italy wants fundamental changes to the plan and the UK has launched a legal challenge in the European Court of Justice.
A statement on Saturday (20 April) from Italys permanent representative in Brussels, Ferdinando Nelli Feroci, said: Transactions in state bonds should be excluded from the taxed instruments in the proposed Tobin tax. He described this as a red-line, non-negotiable issue for Italy.
The plan was requested through enhanced cooperation by 11 countries, including Italy, representing two-thirds of EU economic output. They had already agreed to voluntarily press ahead with the tax after the blocs 16 other members refused to back an earlier, pan-EU proposal.
UK Chancellor George Osborne said a formal complaint had been lodged at the European Court of Justice. We think that the financial transaction tax which the European Commission has put forward is not right for Britain, he told the BBC.
(Excerpt) Read more at euractiv.com ...
A Tobin tax, on financial transactions, will help the financial system as much as adding sand to a gearbox helps a mechanical system.