Munich Financial Center Initiative rejects financial transaction tax
The EU Commission submitted on February 14, 2013 a proposal for a tax on financial transactions (TFT). It will be promulgated through an intensification of the relationships among 11 EU member countries.
The Munich Financial Center Initiative (known by its German acronym of “fpmi”) supports the basic objective of the Commission, which is to hinder “undesirable speculation”. The Initiative wants to make its position very clear. This objective will not be attained by the proposed TFT. This proposal’s priority is generating income. The only way of achieving the goal of a TFT – constraining speculation – would be reaching a worldwide consensus. Stand-alone or single-nation solutions weaken the business and financial communities affected by them, and foster evasive maneuvers, distortions of competition and other undesirable developments. Transactions involving insurers, banks and security dealers will probably feature a passing on of the tax burden to the owners of the properties. This will cause a significant disadvantaging of private and institutional investors. These are the reasons why fpmi is rejecting the EU Commission’s proposal.