LORDS

Lords to publish follow-up report on EU plans for a Financial Transaction Tax

04 December 2013

In their original inquiry the Committee set out to investigate the European Commission’s proposals for a Financial Transaction Tax. The Committee’s report, published in March 2012, said that the proposed FTT was flawed, unworkable, and would fail to fulfil the Commission's own objectives. It also found that the proposals would have a serious impact on the City of London and would be likely to force financial institutions to relocate away from the UK and the EU as a whole.

Since publication of the report, the European Commission has granted an application by a group of 11 Member States to press ahead with a different version of the FTT, using what’s called the enhanced cooperation procedure. The UK has decided not to participate.

The Committee subsequently decided to investigate this Commission decision, in light of the significant implications for non-participating countries such as the UK. It held a one-off evidence session with the Commission, took account of a highly critical leaked European Council Legal Service opinion and will next week publish its follow-up report on these developments.

The publication of the report, entitled Financial Transaction Tax – alive and deadly, comes soon after the pledge by Angela Merkel to make the FTT a key part of the new German coalition deal.

The Report will be published at 00:01am on Tuesday 10 December 2013.

Image: iStock photography  

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