According to the Danish Minister for Economic Affairs and the Interior, Margrethe Vestager, who hosted the latest meeting held by the ECOFIN, most of Member States agreed that banks must pay a fair share of the bill of the crisis, but there are many ways of taxing the banks. Some countries therefore support a financial transaction tax, others don’t and would rather explore alternatives. In addition, ministers also held a discussion on the EU multiannual budgetary framework.

EU finance and economy ministers and central bank governors gathered on the 30-31 of March to discuss the EU strategy for solving the economic crisis, the resolution of failing banks and the EU multiannual budgetary framework. In addition to the agreement reached the past 30 of March to expanding the euro area firewall, Ministers and governors also had a short discussion of taxes on the financial sector. Member States agreed that alternatives to the proposal of the Commission should be explored, while at the same time continuing as planned with technical discussions of the Commission proposal.

Ministers and governors also discussed the multiannual financial framework for 2014-2020, including the level of expenditure, the allocation of funds to different policy areas as well as the revenue side. The sharing of country positions serves as an important input to the on-going negotiations that will lead to a final agreement on the budget.

With regard to the discussion on a common framework for the resolution of failing banks, the Ministers agreed that such framework represents a crucial element in ensuring a healthy banking sector. According to Margrethe Vestager, the Danish Minister for Economic Affairs and the Interior, some EU countries have already introduced resolution regimes, but it is important that EU Member States agree on a common EU framework in order to ensure a level playing field, create the right conditions for cross-border banking and ensure responsibility in the financial sector. This discussion serves therefore as an important contribution to the announced proposal of the Commission on a common framework.