EU Commission Proposal For An EU Financial Transaction

On February 14t^th 2013 the EU Commission adopted a proposal (COM (2013) 71 final) for a directive implementing enhanced cooperation in the area of financial transaction tax ("FTT"). Even though only eleven of the EU's 27 Member States support the FTT, a majority of the EU's 27 Member States have given their permission for the legislation to proceed through an enhanced cooperation process.

The aim of the proposal is for financial institutions to make a fairer contribution following the financial crisis. A secondary aim is to try and avoid fragmentation i.e. each Member State imposing its own FTT. A third objective is that the FTT will support regulatory measures in encouraging the financial sector to engage in more responsible activities, geared towards the real economy.