European Union Extends Consideration of Financial Transaction Tax

The Council of the European Union recently heard further representations on a proposal for the creation of a financial transaction tax at EU level.

At its meeting of June 17, the Economic and Financial Affairs Council (Econfin) heard representations from Austria and France on the state of play of an initiative by ten Member States including France, Germany and Belgium to introduce the tax under the ‘enhanced cooperation’ procedure.

Originally failing to gain support of all Member States, including the United Kingdom, Sweden and the Netherlands, the proposal’s key supporters in October 2012 opted to pursue a compromise regime applying only to participating Member States.

Conceding continuing difficulties, the participating Member States have extended their previous deadline for resolution of the proposal by six months to September 2016, with Austrian Finance Minister, Mr Hans Jörg Schelling, suggesting a failure to reach agreement by this time would likely mean the end of the initiative.

For webcast coverage of the public session, see:

By Hew Donald, Editor, Bloomberg BNA

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