Members of the European Parliament (MEP) this week discussed the possibility of developing a plan to introduce a global tax on financial institutions. It would serve to prevent excessive risk taking by financial institutions and will ensure that the financial industry will pay for damages caused by future financial crises, highlighted in a resolution adopted on Wednesday, March 10.
If the global introduction of such tax proves impossible, the European Union must consider its unilateral implementation, lawmakers said in a press statement.
MEPs want to work out a plan for the implementation of a global tax on financial transactions at the next G-20 Summit. According to MEPs, it is important to assess to what extent such tax would help stabilize global financial markets and prevent a future financial crisis. Also, steps must be taken to ascertain which financial transactions would be marked as “undesirable,” which must be specifically designated by the European Commission.
According to MEPs, this tax must not impede the banking sector from its normal operations, must ensure its continuing ability to finance investments, and stimulate the transfer of capital.
Chairman of the Economic and Monetary Affairs Committee Edward Scicluna (Malta) said that introducing such a tax could bring partisan debate, so it is necessary to assess its true impact on the industry. Although the MEPs prefer a global approach with collaboration from the G-20 nations, they believe that they should explore the advantages and disadvantages of introducing such tax in the European Union.
If the global introduction of such tax proves impossible, the European Union must consider its unilateral implementation, lawmakers said in a press statement.
MEPs want to work out a plan for the implementation of a global tax on financial transactions at the next G-20 Summit. According to MEPs, it is important to assess to what extent such tax would help stabilize global financial markets and prevent a future financial crisis. Also, steps must be taken to ascertain which financial transactions would be marked as “undesirable,” which must be specifically designated by the European Commission.
According to MEPs, this tax must not impede the banking sector from its normal operations, must ensure its continuing ability to finance investments, and stimulate the transfer of capital.
Chairman of the Economic and Monetary Affairs Committee Edward Scicluna (Malta) said that introducing such a tax could bring partisan debate, so it is necessary to assess its true impact on the industry. Although the MEPs prefer a global approach with collaboration from the G-20 nations, they believe that they should explore the advantages and disadvantages of introducing such tax in the European Union.
