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Fekter Promotes Financial Transaction Tax

Published: June 23, 2012; 14:04 · (Vindobona)

There was no agreement on a common financial transaction tax in all EU member states. Austria´s Finance Minister Fekter wants to introduce the tax in a group of countries instead.

Fekter Promotes Financial Transaction Tax / Picture: © ÖVP Bundespartei / Jacob Glaser

Fekter does not want to wait any longer for the financial transaction tax. Above all, Germany, France and Austria push for a common financial transaction tax. Also Belgium, Spain, Finland, Greece, Italy and Portugal seem to favor the tax.

As the UK, Sweden and the Czech Republic refused to introduce the tax, Fekter plans to form a „coalition of the willing“. The Ecofin Council, the Commission and the Parliament must approve the plan. In the best case, the tax may be resolved still in 2012.

Sweden´s Finance Minister Anders Borg argues that the financial transaction tax would cause an increase of loan costs and damage the European economic growth. According to Fekter, a significant majority would support the plan, however.

Fekter said to be satisfied to be a „step closer now“. Austria´s Finance Minister is confident to work out a proposal now with the Commission. Up to nine countries may follow, Fekter explained. „I think there will be a common financial transaction tax. Perhaps not in all member states, but in those states which are in favor of it.“

Fekter explained that the Austrian Green Party will not approve the ESM unless the financial transaction tax will be resolved too. In Austria, a two-third majority is needed. As a result, the governing parties SPÖ and ÖVP had to make an agreement with an opposition party.