After the ECOFIN Council of 07/09/2010

As you may have seen in the media, the meeting of the EU ministers for
economy and finance (ECOFIN), which took place yesterday, could not find
an agreement on the implementation of the FTT. 

Nevertheless it seems, that this is not yet the end of the discussion. The
official communiqué says: Ministers will further discuss the issue at an
informal meeting in Brussels on 30 September and 1 October."

This is confirmed by a statement of  the German finance minister Schäuble,

who said (according to the German edition of the Financial Times of toady)
that the implementation of the tax was not for sure but there would be a
chance for which one must fight.

The British finance minister Osborn said instead: "This has been discussed
since decades and will continue to be discussed for decades."

Unofficial sources said, that Greece would have joined the camp of the
proponents which by now consists of Austria, Belgium, France, and
Germany. 

The president of the EU Commission (the executive of the Union) Barroso

said in a speech at the European Parliament yesterday: "I am also
defending taxes on financial activities and we will come with proposals this
autumn." It is unclear what he means by "financial activities". It could be the
"Financial Activities Tax" as proposed by the IMF, but it could also be
something else. Probably the opacity is by intention in order not to occur
partisan between the big shots Germany and France on the one hand and
the UK at the other.

France announced to raise the issue of the FTT again in the G20, although
the Toronto summit had refused the FFT. 

And the Euro zone?

As the Germans had announced that in case that an implementation at EU
level would not be possible - and the statement of Osborn points very much
in that direction - an implementation in the Euro Zone should be considered.
The finance minister of Luxemburg, Luc Frieden, opposed this and said the
FTT "in the Euro zone only is not acceptable." 

No agreement on bank levy

The ECOFIN could not reach an agreement on a bank levy neither. The
Commission has announced to present a proposal for a European solution
in October. 

What to do?
Although the situation is complicated the window of opportunity for the FTT
is not closed. The differences between the elites are obvious. THey are not
capable to come to an agreement in either direction. Pressure from civil
society should therefore continue. 

This is also important in those countries, where the government is in favor

of the FTT, in order to prevent a retreat. There are some major countries
such as Italy and Spain, where the government is silent. There, pressure
should try to reach a positive attitude.
The option of the implementation in the Euro zone should be looked at
more in detail

Next steps
The Europeans should prepare for the October ECOFIN and the proposal
announced by the Commission.  
At global level, the UN conference on the MDGs and the General Assembly
and the G20 summit in Seoul could be further landmarks for campaigning.
    
Best
 
Peter Wahl
WEED - Weltwirtschaft, Ökologie & Entwicklung
Eldenaer Str. 60, 10247 Berlin
Tel: +49-(0)30-2758 2616