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MEPs back 'Robin Hood tax' on banks in EU
10 Mar 2010MEPs today urged the EU to implement a “Robin Hood tax” on rich banks to fund climate change and development policies.
A resolution was passed by 536 to 80 in favour of a financial transaction tax, asking the European Commission to investigate a levy.
Charities and unions welcomed the move but concerns were raised about Britain surrendering tax powers to Brussels, as well as the effectiveness of a EU solution to what many saw as a global problem.
Britain, France and Germany support a financial tax at global level, and EU Taxation Commissioner Algirdas Semeta said this was the best way to tackle the issue.
He said a global tax was the only way to prevent a flight of capital from the EU, and warned that without a clear “distributive mechanism” the revenue generated could end up in the few countries with large financial centres.
Conservative MEP Kay Swinburne said the EU should not have the power to raise a financial transaction tax: “The financial services industry should play its part to ensure that the crisis never happens again. Some kind of levy on financial institutions could bare some merit.
“However, we must not implement an EU solution to a global problem. To do so would further reduce competitiveness of the European economy, and raise the cost of capital to businesses.”
TUC general secretary Brendan Barber backed the vote: “This is a very significant development which will be warmly welcomed.”
Elise Ford, head of Oxfam's EU office, said: “Today's vote is proof of broad support in Europe for a financial transaction tax to ease the social impact of the global economic crisis by making a significant contribution to preventing cuts in public services, tackling climate change and reducing global poverty.”
Reader views (4)
Makes sense. Banks caused all the problems in the world so the best way to fix those problems is to have a forced redistribution of wealth.
The entire world is sliding backwards. Want to give to charity? Go for it. It shouldn't be mandated by law though under the guise of "stabalizing" the markets.
Moreover, does anyone really think that if there's a big pool of money coming into a gov't organization that it will really end up in the hands of the neediest. Politicians will figure out a way to get their hands on it. How much money from the UN actually helps the people who need it the most?
- Chris, NYC, USA, 11/03/2010 19:55
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Just goes to show what an irrelevant and destructive force the EU has become and also how the European Parliament exists not to represent us but to help the totally unelected European Commission to impose Socialism by the back door on the unwilling.
In all ways and for all reasons we would be so much Better Off Out!
- Matthew, London UK, 11/03/2010 18:56
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Well, one of the objections is that if the UK does it on it's own they'll all go and live with Ashcroft - this helps to dampen those fears!
- Ian Sullivan, UK, 11/03/2010 18:14
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A tax of this kind will fall disproportionally on London.
Tax and spend on usually misguided ventures they consider "worthy" causes, until other peoples money runs out, is the M.E.P.s mission statement.
- Alan, Llandrindod Wells ,Wales, 11/03/2010 17:16
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