Italy sees progress on euro zone financial transactions tax
The finance ministers of 11 euro zone countries willing to introduce a financial transactions tax (FTT) are expected to make progress on the thorny issue in a meeting on Saturday in Luxembourg, Italy’s economy minister said.
Germany and France proposed the tax in 2012, in the midst of the euro zone debt crisis. As much a political symbol as an effort to correct the excesses blamed for the worst financial turmoil in decades, it has been debated ever since.
Only 11 of the 28 countries of the European Union accepted in principle to introduce a European FTT, which would complement similar levies already in force in some European countries, such as Germany.
A common FTT would avoid tax competition among European countries, the supporters of the project claim.
Britain, home to Europe’s largest financial sector, has long opposed the tax, fearing it would cause unnecessary damage to the financial industry.
On Saturday, the 11 finance ministers involved in the project will meet on the sidelines of a regular meeting with their counterparts from the other EU countries.
“I expect some progress,” Italy’s finance minister Pier Carlo Padoan told reporters on the eve of the meeting.
Finance ministers from Germany, France, Italy, Austria, Belgium, Estonia, Greece, Portugal, Slovakia, Slovenia and Spain have met several times to strike a deal, but so far to no avail.
The introduction of the tax was initially foreseen in 2014, but the start date has been postponed to January 2016, a deadline that many think may be missed again.
Ministers have long disputed how to levy the tax and which financial products should be affected. (Reporting by Francesco Guarascio; editing by Jan Strupczewski, Larry King)
