Common system of financial transaction tax

The Council took note of a presentation by the Commission of a proposal for a directive aimed at introducing a financial transaction tax in the EU.

It asked the Council working groups to examine the proposal.

The Commission considers that its proposal will enable the financial industry, currently under-taxed in relation to other sectors, to make a fair contribution, and will also create a disincentive for transactions that do not enhance the efficiency of financial markets.

The Commission estimates that, depending on market reactions, this proposal could yield tax revenues of up to EUR 57 billion a year.

In line with its proposal for a decision on the EU's system of own resources, the Commission proposes that the revenue generated by a financial transaction tax be used, either wholly or partially, to gradually replace member states' contributions to the EU budget, thus alleviating the burden on national treasuries.