The European Commission presented a proposal for allowing the 10 member states that wish to apply an EU financial transaction tax (FTT) through enhanced cooperation to do so, because all the legal conditions for such a move are met. The proposal must be adopted by a qualified majority of Member States, and receive the Parliament's consent, in order for the 10 Member States to move forward.

The European Commission has concluded that all legal conditions are met and that the member states that want to move ahead with an EU financial transaction tax (FTT) should be allowed to do so. It has therefore presented a proposal which is an important procedural step in the enhanced cooperation process. This proposal follows the official request sent over the past few weeks by 10 member states to the Commission for enhanced cooperation on an FTT.

President of the European Commission, Jose Manuel Barroso underlined that the tax can raise billions of euros of much-needed revenue for member states in these difficult times. He also stressed that the EU needs to ensure the costs of the crisis are shared by the financial sector instead of shouldered by ordinary citizens. In addition, any member state that wishes to join at a later stage may do so, under the same conditions as the member states that have participated from the beginning.

The Commission's proposal outlines how a common FTT applied by a core group of Member States would be both timely and beneficial. According to the Commission, it would reinforce the Single Market, by reducing the complexities and competitive distortions that arise from a patchwork of different national approaches. The FTT would also ensure a fairer contribution from the financial sector to the public purse. It would create a more level playing field between the financial sector and other sectors in covering the costs of the crisis. Finally, a common FTT would make financial markets more efficient, by steering them away from casino-type trading to more stable activities which support the real economy.