Šemeta looked at what the FTT is projected to deliver, and said he retained the hope that through the EU's example a global FTT would also become a reality some day.
What will the FTT deliver?
The answer is that the benefits are manifold. For a start, we expect the FTT to generate €30-35 billion a year for the Member States that apply it. Without burdening ordinary citizens, this is a significant new resource for stabilising public finances, growth-friendly investment or meeting global commitments such as development and climate change.
Secondly, the FTT is the embodiment of fair taxation. Currently the financial sector is under-taxed, both in Europe and worldwide, compared to other sectors. With a Financial Transaction Tax, we can redress that imbalance. We can ensure that the financial sector makes a fair contribution to the public purse, and to the costs of the crisis which everyone knows, is still not over yet. Moreover, the FTT should deter the "casino-type" trading that contributed to this crisis. It will support other regulatory measures in encouraging more responsible financial activities, geared towards the real economy.
Finally, for the EU, a common FTT will reduce the fragmentation of our Single Market. This also has advantages for countries outside the EU. One single tax is cheaper and easier for businesses and investors to contend with, than a myriad of national approaches implying high compliance costs and risks of double taxation.
Taking all this into account, it is easy to understand the enthusiasm of our citizens and of the Member States signed up to apply the common FTT.
Global approach in the future
I have referred already to Europe being a pioneer with this tax. We are ready to lead the way: to show that the FTT can, and should, be applied widely. I believe that the group of 11 Member States will grow. Several others have already expressed an interest in joining the FTT-zone in the future. And I also retain hope that, through the EU's example, a global FTT will also be a reality some day.
The Commission has always been supportive of an international approach to the Financial Transaction Tax. It offers an attractive funding solution for our global challenges such as development and climate change. We have actively pushed for this in the international arena and will continue to do so. Indeed, I have discussed the issue with the UN Secretary General in New York last week and I will continue with a number of interlocutors in Washington.
We all know that the United-States remains sceptical about the FTT. But the tax also has its supporters here, which I want to encourage. And I believe that things can evolve: nowadays every government need new sources of public funding. And yet none of them wants to increase the burden on ordinary citizens and small businesses which create employment and growth.
Conclusion
Today, a global FTT may seem a very remote possibility. But let's not forget that, even two years ago, the same could have been said of a harmonised FTT in the EU. New ground is being broken. A precedent will be set with the regional FTT in 11 Member States. This is a chance to prove the benefits of a well-designed FTT, and to confound the longtime cynics. And, once this is done, I have every confidence that others will follow in applying the fair and sensible Financial Transaction Tax.
Full speech
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