PES Economic and Finance Chair Andreas Schieder welcomes ECOFIN decision to put Financial Transaction Tax back on Table

10/05/2010

Speaking on the series of decisions taken by ECOFIN ministers last night, Party of European Socialists (PES) Economic and Finance Network Chair, Andreas Schieder said that; ‘I am particularly heartened to see that the idea of a Financial Transaction Tax (FTT) is firmly back on the agenda. In a time of crisis, circumstances demand fresh thinking. I am glad that the Conservatives Finance Ministers have softened their opposition to an FTT”.

The declaration from the ECOFIN Council pledged that; “Furthermore, we need to continue to work on other initiatives, such as the stability fee, which aim at ensuring that the financial sector shall in future bear its share of burden in case of a crisis, also exploring the possibility of a global transaction tax”.

With the Ecofin-Conclusions the PES idea of a Mechanism for Financial Stability has been adopted by the 27 Economic and Finance Ministers. The Ministers also agreed a European Monetary Guarantee that would provide a 440 billion Euro buffer for weakened member states.

Mr. Schieder congratulated Spanish Finance Minister Elena Salgado for her leadership in securing the two main pillars of the PES crisis recovery plan through the establishment of a stabilization fund, and a European Monetary Guarantee. “Now it is necessary to make rapid progress on financial market regulation and supervision”, said Andreas Schieder.

For further information please contact Brian Synnott on +32 474 98 96 75 (brian.synnott@pes.org)