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Financial Transaction Tax

 

On 14 February 2013 the European Commission adopted a proposal for a Council Directive implementing enhanced cooperation in the area of financial transaction tax, which reflected the scope and objectives of its original FTT proposal of September 2011. This follows the decision of the Council on 22 January 2013 to authorise enhanced cooperation between 11 Member States. Luxembourg decided not to participate in the enhanced cooperation on introducing an FTT.


According to the European Commission, the three core objectives of the FTT are:

  • to strengthen the Single Market by reducing the number of divergent national approaches to financial transaction taxation,
  • to ensure that the financial sector makes a fair and substantial contribution to public revenues,
  • to support regulatory measures in encouraging the financial sector to engage in more responsible activities, geared towards the real economy.


The proposed Directive will now be discussed by Member States, with a view to its implementation under enhanced cooperation.

Articles

  • 03/01/2014

    After several months of inactivity, the EU Member States participating to the scheme under enhanced cooperation met on 27 November 2013. This meeting was followed on 12 December 2013 by a plenary meeting of the competent Council working party, gathering representatives of all 28 EU Member States. The European Commission reportedly analyzed in the context of the aforementioned meetings the legality of the scheme in light of the opinion dated 6 September 2013 delivered by the legal service of the Council. Unlike the Council’s legal service, the Commission (rather unsurprisingly) concluded that the proposed FTT directive is in conformity both with customary international law and EU primary law.

  • 22/10/2013

    After several months without real significant progress at the level of the Council of the European Union, the proposed EU financial transaction tax (FTT) is back in the headlines, in a rather unexpected manner. The project has indeed recently come under intense “friendly fire” from the Council’s own lawyers.

  • 09/10/2013

    Dans la perspective des élections parlementaires, l’Association luxembourgeoise des fonds d’investissement (ALFI) a mis en garde les partis politiques et leurs têtes de liste contre toute hausse irréfléchie de la pression fiscale qui pèse sur les fonds d’investissement luxembourgeois. Elle risquerait de mettre en danger la compétitivité d’un secteur clé de l’économie du pays.

  • 01/10/2013

    The ABBL believes that the conclusion of the Council legal service opinion constitutes a welcome development, which is consistent with the concerns raised by our association  and our Government  throughout the year.

  • 20/09/2013

    L’ABBL salue les conclusions des juristes du Conseil de l’Union européenne, lesquelles sont conformes aux réserves précédemment émises par notre association et notre Gouvernement.

  • 31/05/2013

    In April 2013, a legal challenge was launched by the Government of the UK in front of the Court of Justice of the European Union against the decision adopted by the Councilin January to authorise enhanced cooperation between 11 Member States in the field of FTT. This initiative is reportedly meant as a precautionary measure aimed at protecting the position of the United Kingdom, pending the adoption of the relevant directive by the Participating Member States.

     

  • 23/05/2013

    The European Banking Federation (EBF) calls on the ECOFIN Council to carefully consider the implications of any decision on the implementation of a Financial Transaction Tax (FTT). Together with another eight major associations, representing various sectors of the financial services industry, the Federation voices serious concerns over the introduction of the proposed Financial Transaction Tax under the enhanced cooperation procedure in 11 Member States. In a letter to EU Finance Ministers the associations outline the wider effects it would have across the EU and even beyond.

  • 08/05/2013

    Le 14 février 2013, la Commission européenne a adopté une proposition de directive du Conseil mettant en œuvre la coopération renforcée dans le domaine de la taxe sur les transactions financières (TTF).

    Le Luxembourg a décidé de ne pas adhérer à l'introduction d'une telle taxe dans le cadre de la coopération renforcée.

  • 25/04/2013

    The implementation, by part of the Member States of the European Union only, of the European Commission’s proposal for a Financial Transaction Tax (FTT)  under the enhanced cooperation procedure (ECP), i.e. a procedure that has hitherto only been used twice in the fields of divorce law and patents, raises several substantive questions from a legal perspective, which, for the time being, remain largely unresolved.

  • 18/04/2013

    Compared to the frequently glacial pace of European bureaucracy, the Financial Transaction Tax (FTT) has moved through EU decision-making processes at a surprisingly high speed. When it became clear in 2012 that EU member states had insurmountable divergences of opinion on the question whether to introduce a financial transaction tax, the most fervent members decided to speed up things by going down the (nearly) untested road of “enhanced cooperation procedure”.

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