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<h1>Europe Authorizes “Robin Hood Tax” on Financial Transactions</h1>
 <div><div><div><p><span>This article was originally published by the <a href="http://http//www.ips-dc.org/blog/giant_victory_in_europe_on_taxing_financial_speculation">Institute for Policy Studies</a>.</span></p>  <p></p>  <p>EU finance ministers were scheduled to vote January 22 on whether to authorize 11 member states to proceed with the introduction of a financial transaction     tax (FTT). As it turned out, the ministers didn&rsquo;t even have to take a formal vote because it was obvious that there was sufficient support to move ahead.</p>  <p>The 11 countries are Belgium, Germany, Estonia, Greece, Spain, France, Italy, Austria, Portugal, Slovenia and Slovakia. It will be possible for other     governments to opt in at a later date. And in fact, the Netherlands has expressed interest, but they want to negotiate an exemption for their pension     funds.</p>  <p>The aim of this     proposal is &ldquo;for the financial industry to make a fair contribution  to tax revenues, whilst also creating a disincentive for transactions  that do not     enhance the efficiency of financial markets.&rdquo;</p>  <h3><b>Next steps</b></h3>  <p>The next step is for the European Commission to make a proposal for the tax. The proposal will be based on    one <a href="http://europa.eu/rapid/press-release_MEMO-11-640_en.htm">introduced by the Commission</a> in September 2011 that would apply a 0.1 percent tax rate on trades of stocks and bonds, and a 0.01 percent rate for derivatives trades. As described in the    <a href="http://www.consilium.europa.eu/uedocs/cms_data/docs/pressdata/en/ecofin/134949.pdf">European Council statement</a> released today, the aim of this     proposal is &ldquo;for the financial industry to make a fair contribution to tax revenues, whilst also creating a disincentive for transactions that do not     enhance the efficiency of financial markets.&rdquo;</p>  <p>The proposed tax is based on the &ldquo;residence principle,&rdquo; meaning that a financial transaction would be taxed in each case where a resident of one of the     participating EU member states was involved even if the transaction was carried out in a country that is not a participant.</p>  <p>The tax proposal will have to be adopted by unanimous agreement of the participating member states. EU Tax Commissioner Algirdas Semeta says it is possible     that the tax could enter into force beginning January 1, 2014.</p>  <h3>Destination of revenue remains unclear</h3>  <p>Although <a href="http://www.usnews.com/news/business/articles/2013/01/22/eu-grouping-set-for-financial-transaction-tax">some press reports</a> have said     the funds will go towards bailing out European banks, there is no agreement yet on how revenues will be allocated.</p>  <p>International campaigners who have been     advocating for financial transactions taxes for several years will be redoubling their efforts to demand that revenues to go towards social and     environmental purposes.</p>  <hr width="50%"><p><b>Interested?</b></p>  <ul><li><br>Eleven countries in Europe hope to raise billions of Euros through a tiny tax on financial speculation. This week, a major vote in the European parliament brings that plan one step closer to becoming reality. </li>  </ul><ul><li> <br>Before there was Occupy, thousands of nurses were already taking on Wall Street to demand a financial transaction tax.</li>  <li><br>Detroit  entrepreneurs are learning to rely on each other, finding the seeds of a  new economy in resources discarded by corporate America.</li>  </ul></div><!-- <img src="fe199751536f4e2f921bdd747e76523b"> --></div><!-- <p>Sarah Anderson directs the <a href="http://www.ips-dc.org/globaleconomy" target="_blank" rel="noopener noreferrer">Global Economy Project</a> of the        <a href="http://www.ips-dc.org/" target="_blank" rel="noopener noreferrer">Institute for Policy Studies</a>, a progressive multi-issue think tank in Washington DC. She&#8217;s also the co-author of the IPS <a href="http://www.ips-dc.org/reports/executive_excess_2009" target="_blank" rel="noopener noreferrer">report</a>,        <i>America&#8217;s Bailout Barons: Taxpayers, High Finance, and the CEO Pay Bubble</i>. This article was originally published by the <a href="http://http//www.ips-dc.org/blog/giant_victory_in_europe_on_taxing_financial_speculation">Institute for Policy Studies</a>.</p> --></div><!-- <a href="http://www.yesmagazine.org/new-economy/european-union-parliament-landslide-vote-robin-hood-financial-transactions-tax">In EU Parliament, a Landslide Vote for &#8220;Robin Hood Tax&#8221;</a> --><!-- <a href="http://www.yesmagazine.org/issues/9-strategies-to-end-corporate-rule/nurses-fight-for-a-dose-of-tax-justice" title="Nurses Fight for a Dose of Tax Justice">Nurses Fight for a Dose of Tax Justice</a>  --><!-- <a dir="ltr" href="http://www.yesmagazine.org/new-economy/5-ideas-from-detroit">Seeding Small Business: 5 Ideas from Detroit</a> -->
<p>This article originally appeared in <a href="https://www.yesmagazine.org">Yes! Magazine</a> at <a href="https://www.yesmagazine.org/economy/2013/01/26/europe-authorizes-robin-hood-tax-financial-transactions-ftt">https://www.yesmagazine.org/economy/2013/01/26/europe-authorizes-robin-hood-tax-financial-transactions-ftt</a>.</p><link href="https://www.yesmagazine.org/economy/2013/01/26/europe-authorizes-robin-hood-tax-financial-transactions-ftt" rel="canonical"/><p>Yes! Magazine is a nonprofit, independent media organization dedicated to telling stories of ... . Learn more at <a href="https://www.yesmagazine.org">Yes! Magazine</a></p><img id="republication-tracker-tool-source" src="https://www.yesmagazine.org/?republication-pixel=true&post=12315&ga4=G-74QJNNY44Z" style="width:1px;height:1px;">

Europe Authorizes “Robin Hood Tax” on Financial Transactions
 This article was originally published by the Institute for Policy Studies.    EU finance ministers were scheduled to vote January 22 on whether to authorize 11 member states to proceed with the introduction of a financial transaction     tax (FTT). As it turned out, the ministers didn’t even have to take a formal vote because it was obvious that there was sufficient support to move ahead.  The 11 countries are Belgium, Germany, Estonia, Greece, Spain, France, Italy, Austria, Portugal, Slovenia and Slovakia. It will be possible for other     governments to opt in at a later date. And in fact, the Netherlands has expressed interest, but they want to negotiate an exemption for their pension     funds.  The aim of this     proposal is “for the financial industry to make a fair contribution  to tax revenues, whilst also creating a disincentive for transactions  that do not     enhance the efficiency of financial markets.”  Next steps  The next step is for the European Commission to make a proposal for the tax. The proposal will be based on    one introduced by the Commission in September 2011 that would apply a 0.1 percent tax rate on trades of stocks and bonds, and a 0.01 percent rate for derivatives trades. As described in the    European Council statement released today, the aim of this     proposal is “for the financial industry to make a fair contribution to tax revenues, whilst also creating a disincentive for transactions that do not     enhance the efficiency of financial markets.”  The proposed tax is based on the “residence principle,” meaning that a financial transaction would be taxed in each case where a resident of one of the     participating EU member states was involved even if the transaction was carried out in a country that is not a participant.  The tax proposal will have to be adopted by unanimous agreement of the participating member states. EU Tax Commissioner Algirdas Semeta says it is possible     that the tax could enter into force beginning January 1, 2014.  Destination of revenue remains unclear  Although some press reports have said     the funds will go towards bailing out European banks, there is no agreement yet on how revenues will be allocated.  International campaigners who have been     advocating for financial transactions taxes for several years will be redoubling their efforts to demand that revenues to go towards social and     environmental purposes.  Interested?  Eleven countries in Europe hope to raise billions of Euros through a tiny tax on financial speculation. This week, a major vote in the European parliament brings that plan one step closer to becoming reality.    Before there was Occupy, thousands of nurses were already taking on Wall Street to demand a financial transaction tax.  Detroit  entrepreneurs are learning to rely on each other, finding the seeds of a  new economy in resources discarded by corporate America.

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