'EU needs financial transactions and corporate tax' - Alternattiva

The Green Party, Alternattiva Demokratika, has expressed 'disappointment' over the lack of agreement on a common consolidated corporate tax base and on a financial transactions tax, calling into question both government's and Labour's opposition to the so called Tobin Tax.

AD chairperson Michael Briguglio said he was disappointed that both sides came out against a common EU corporate tax, and a tax on financial transactions. "The financial transactions tax of 0.1% on bond and equity transactions, and 0.01% on derivative transactions between financial firms, was aimed at supporting European countries in crisis, through the generation of up to €55 billion a year," Briguglio said.

"It is high time that banks and financial institutions participate in responsibility sharing for the economic crisis, especially since they received massive help from public funds when this was needed."

Opposition leader Joseph Muscat has reiterated his support to government on EU fiscal harmonisation, as long as Malta did not favour tax harmonization. Muscat said this would hurt the country's financial services.

Briguglio is arguing that if workers and employers are paying tax to help sustain economic and social stability, then it is only fair that banks and financial institutions do the same. "The financial transactions tax, proposed by the European Commission and supported by progressive forces, attempts to regulate the reckless unregulated action of the financial sector that caused the current crisis," he said.

Briguglio accused the Nationalist and Labour parties of "championing champion corporate interests and currency speculators".

"It has become almost impossible to figure out who of the two mainstream parties is the most conservative," Briguglio said. "This shows AD is the only credible progressive alternative in Malta."

France and Germany want to press ahead with a Tobin tax (also called the Robin Hood Tax) as one way of helping to deal with the sovereign debt crisis in the EU. Britain is opposing the tax, which means the EU cannot proceed with the proposal becuase all taxation matters have to be agreed by all 27 members of the EU.

But France and Germany would be able to use what are known as "enhanced co-operation" powers under the Lisbon treaty to introduce the tax in the 17 members of the eurozone. Britain objects to this because the tax - 0.1% on stock and bond trades and 0.01% on derivatives - could still apply in the City. The European Commission has proposed it should be levied on any bank registered where the tax applies. This means that any transactions of German-registered banks in the City would be subject to the tax.