![]() If adopted, the EU FTT would have come into effect on 1 January 2014. As a way out, advocates of the FTT such as the finance ministers from Germany, Austria and Belgium have suggested that the tax could initially be implemented only within the 17-nation eurozone, which would exclude reluctant governments like the United Kingdom and Sweden. The likelihood of a global FTT is low due to opposition from the United States. Particularly the UK government has expressed strong views about the negative impact of the tax and is expected to use its power of veto to block the implementation of this proposal, unless the tax was to be introduced globally. Nations that oppose the proposal include the United Kingdom, Sweden, the Czech Republic and Bulgaria. Austria and Spain are also known to support an EU FTT. France, Germany, Spain, Belgium, Finland spoke in favor of the EU proposal. The Commission proposal requires unanimity from the 27 Member States to pass. According to the European Commission this would also "help to reduce competitive distortions in the single market, discourage risky trading activities and complement regulatory measures aimed at avoiding future crises". Given 10 EU member states already have a form of a financial transaction tax in place, the proposal would effectively introduce new minimum tax rates and harmonise different existing taxes on financial transactions in the EU. In December 2012 the European Commission's State Aid Scoreboard revealed a new figure saying the volume of national support to the financial sector between October 2008 and 31 December 2011 amounted to around 1.6 trillion euros (13% of EU GDP), two-thirds of which came in the form of State guarantees on banks' wholesale funding. On 28 September 2011, president of the European Commission José Barroso officially presented a plan to create a new financial transactions tax "to make the financial sector pay its fair share", pointing out that the financial sector received 4.6 trillion euros from EU member states during the crisis. European Commission proposal The building of the European Commission where the EU FTT proposal was drafted At the same time it suggested to reduce existing levies coming from the 27 member states. The following day the European Commission called for Tobin-style taxes on the EU's financial sector to generate direct revenue for the European Union. On 28 June 2010, the European Union's executive said it will study whether the European Union should go alone in imposing a tax on financial transactions after G20 leaders failed to agree on the issue. Refinancing transactions with central banks and the ECB, with the EFSF and the ESM, and transactions with EU.Transactions carried out as part of restructuring operations. ![]()
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