Malta reiterates its opposition to EU-wide financial transaction tax

Finance minister Tonio Fenech has reaffirmed Malta's stance against the imposition of an EU-wide Financial Transaction Tax, and the creation of a fiscal union, after 16 member states backed the initiative.F

Fenech affirmed Malta's opposition to the creation of a fiscal union, emphasising Malta's stand that democratic control and accountability of budgets should remain at a level where the impact of decisions would be felt, highlighting the importance of the involvement of national parliaments.   

At the Council meeting, ministers also discussed developments regarding proposals to introduce a Financial Transaction Tax (FTT) in a limited number of Member States, under a process that is known as 'enhanced cooperation'.

This proposal follows in the wake of a previous proposal to introduce an EU-wide transaction tax which was shot down by several member states, including Malta. Malta's opposition to the plan was borne out of scepticism that the proposal could undermine the stability of the local financial services industry. 

An Ecofin press statement elaborated that it had received letters from seven member states (Belgium, Germany, Greece, France, Austria, Portugal and Slovenia) requesting a proposal for an FTT plan as 'enhanced cooperation'.

It added that four delegations (Estonia, Spain, Italy and Slovakia) announced that they would shortly follow suit.

The Commission said that a decision to authorise enhanced cooperation can be taken "as a last resort" once it has established that the objectives cannot be attained within a reasonable period by the EU as a whole, and provided that at least nine member states participate.

"They must submit a request to the Commission, specifying the scope and the objectives of the enhanced cooperation and the Commission may submit a proposal to the Council to that effect," the Ecofin statement said.

To this effect, the Commission will be making a proposal together with the relevant impact assessment and the item will be discussed at forthcoming Ecofin sessions.  

The Commission also said that the Council also agreed to give Portugal an extra year until 2014, to correct its excessive government deficit, and relax the deficit targets set for 2012 and 2013.

Other issues discussed include the Bank Capital Requirements and a review of implementation of the European Semester.

The Council also adopted a regulation on the allocation of fishing opportunities between member states (13502/12). The protocol provides fishing opportunities for 86 tuna vessels (41 purse seiners and 45 long-liners).