May 15, 2001
In Europe
On Tuesday, May 1, Prime Minister Verhofstadt presented priorities of the future Belgian Presidency of the European Community to the Consultative Federal Committee for the European agenda. In the afternoon, they were presented to the international Press. There was no room for questions or comments from parliamentarians. The debate was postponed to Tuesday, May 8.
This "note of priorities" is only a selection from the document approved by the Minister Council of December 15, 2001. In this document -"Global thematic approach"-, the Belgian government promises, during the EU presidency, to look into how a study can come down about the opportunity, the feasibility and possible advantages of introducing a tax on movements of speculative capitals. (point 17).
This promise follows the request of the Parliament to take advantage of the opportunity of the EU presidency in order to take an initiative for a better control of international financial movements (resolution adopted respectively by Deputies on 11.9.2000 and by the Senate on 21.7.2000. This concern has also been expressed by IMF, during its Spring meeting last week, which pleaded in favor of the introduction of measures preventing financial crisis (Argentina and Turkey being the most recent examples). The proposition to introduce a variable tax on every financial currency transactions (the Tobin tax) aims precisely to a better stabilization of the financial Market.
For Prime Minister Verhofstadt, this is not a priority. In his May 2 note, the fiscal chapter does no longer mention an initiative at the European level for studying and debate about the Tobin tax. During a meeting between the Dutch speaking and French speaking networks "Action against financial speculation" and the Cabinet secretary M.Coene held on April 24, this latter confirmed that the Government will indeed execute what has been decided during the Minister Council of December 15, 2000, "since this represents the will of the Government majority" He also added that he personally considered "the discussion within the European frame is a waste of time, since the Tobin tax is not the appropriate answer for avoiding financial crisis, the Market mechanism offering the best guaranties for re-establishing financial markets unbalances".
Meanwhile, defenders of a Tobin tax kind set up strong arguments (supported by works of professors Paul-Berndt Spahn, Rodney Schmidt and Lieven Denys) which demonstrate that a variable tax on currency speculation is technically feasible and that it does not contradict European treaties.
As a complement to the "Global thematic approach" document, approved by the Minister Council of December 15, 2000 and to the "Note of priorities "of May 2, will come a Note of programmation" containing the programme of each Minister, acting as presidents of the European Council (Agriculture, Ecofin, Environment, Development cooperation, Foreign affairs.). These programmation notes will be discussed with The President of the European Commission Romano Prodi on June 2. Prime Minister Verhofstadt insists about the fact that the three documents must be read in full, if it is desired to execute the Belgian presidency programme during the next six months. The final version of this programme will be presented to the European parliament on next July 4.
The 8 May debate in the Belgian parliament and the discussion in the European parliament on July 4 are two occasions for asking the Belgian government to hold its promise and to propose the debate about the Tobin tax at the European level. We count on the fact that the Minister Council decision of December 15, 2000 must be respected.
Action against financial speculation
In Latin America
An initiative of Argentine Representatives (M Cafiero, G. Cardesa, J.Obeid, C.F. de Kirshner, A.Bravo, A.Castro, M.Ortega, H.Polino, G.Galland, R.Torres Molina, C.Raimundi, J.Vitar, J.Zacharias) aims to raise pressure upon the Republic president about a resolution project aiming to fight the chronic finance instability of the country by the introduction of the Tobin tax which redistribution principles, internationally managed, would firstly reduced the debt of the most deep in debt countries.
Translation: Jean Pierre Schermann, volunteer translator
More Information on Currency Transaction Taxes
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