The Council authorises 11 member states to proceed with the introduction of the financial transaction tax
The decision authorising 11 member states to proceed with the introduction of a financial transaction tax (FTT) through "enhanced cooperation" was adopted by the Council. 11 member states supports the Commission's proposal that involved a harmonised minimum 0.1% tax rate for transactions in all types of financial instruments except derivatives (0.01% rate).
Belgium, Germany, Estonia, Greece, Spain, France, Italy, Austria, Portugal, Slovenia and Slovakia were authorised by the Council to introduce a financial transaction tax (FTT) through "enhanced cooperation". The Commission will now make a proposal defining the substance of the enhanced cooperation, which will have to be adopted by unanimous agreement of the participating member states. 11 member states agreed to move forward the financial transaction tax proposal in October 2012.
In September and October 2011, the 11 member states wrote to the Commission requesting a proposal for enhanced cooperation, specifying that the scope and objective of the FTT be based on that of the 2011 proposal. The decision is based in the Commission's Proposal for a Council Directive on a common system of financial transaction tax and amending Directive 2008/7/EC adopted in September 2011. Discussions on this proposal received insufficient support within the Council. It involved a harmonised minimum 0.1% tax rate for transactions in all types of financial instruments except derivatives (0.01% rate). The aim was for the financial industry to make a fair contribution to tax revenues, whilst also creating a disincentive for transactions that do not enhance the efficiency of financial markets.
Requirements for enhanced cooperation are laid down in article 20 of the Treaty on European Union and articles 326 to 334 of the Treaty on the Functioning of the European Union. In particular, it must be established that the objectives cannot be attained within a reasonable period by the EU as a whole. At least nine member states must participate, and the cooperation must remain open for any others that wish to join.