UK legal challenge rebuffed as euro nations prepare FTT statement

30/04/2014

 statement 

 

The European Court of Justice Wednesday (30 April) threw out the United Kingdom’s controversial legal challenge against the bloc of euro area nations pressing ahead with a Financial Transaction Tax.

 

European Court of Justice. Luxembourg, 2006.

[Cédric Puisney/Flickr]

ECJ judges refused to block a tax that had not yet been agreed on. The 11 member states, Germany, France, Spain, Italy, Belgium, Austria, Portugal, Greece, Estonia, Slovakia, Slovenia who are pressing ahead with the FTT through enhanced co-operation, are yet to agree the details of their version of the levy.

Enhanced cooperation is a legal mechanism which allows a group of at least nine nations to pass European laws applicable only among themselves, thereby circumventing the need for unanimity among member states. EU tax law requires unanimity which the European Commission's original proposal for an EU-wide levy was unable to achieve.

Statement of intent expected on FTT

A declaration by the bloc on the future form of the tax is expected at the ECOFIN meeting of finance ministers on 6 May or at the Eurogroup meeting of euro area nations the evening.

EurActiv understands it will be a statement of intent to introduce a bloc-wide tax on shares and some derivatives, with a widening scope over different types of derivatives, introduced on a step-by-step basis over a set timeline.

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