From the poor to the Tobin tax

Green light for the financial transaction tax, with a strengthened cooperation among 11 Member States; stop to mandatory women quotas on corporate boards, sine die; all eyes on next year’s budget and negotiation for multi-year one; on with the new fund for needy citizens. Are just some of the issues addressed by the European Commission that approved its Program for the coming 12 months.Seven priorities. There are seven "priority areas" to put the economy back in place, promote competitiveness and create jobs, pursue the social and security goals,reinforce its role of European "global actor": the Commission’s Work Program for 2013 has been presented on October 23 by the European Parliament vice president Maros Sefcovic: "The priority areas" include first of all the creation of a genuine European Monetary Union", and "new rules to strengthen stability, transparency and customer protection in the financial field". The executive therefore wants to "boost competitiveness through the Single Market and Industrial policy" and implement the "connect to compete" project " by liberalizing energy network, boosting investments in broadband infrastructure, modernize transport and logistics in Europe", clarified Sefcovic. Furthermore, the College will move "towards job creation , "use European resources to boost competitiveness and build a safer Europe , confirming itself as a "global actor".Helping the poor. Of special interest the proposal presented on October 24 by the President of the European Commission José Manuel Barroso, head of the Commission: " At the European level, we need new solidarity mechanisms and proper resources to help deprived and poor people who in many cases are living in a real social emergency situation" . With the new Fund (that should be enforced in 2014, while until 2013 a yearly fund for food aid of 500 million euros will be available) the deprived persons will receive essential goods, such as rice, pasta, chocolate, sugar, canned goods, as well as clothing, shoes, soap, toothpaste, shampoo. These essential goods will be delivered- by charity organizations and voluntary bodies, including catholic associations – to poor families without income, homeless, materially -deprived children. The Fund for the deprived foresees a budget of 2.5 billion euros during the period 2014-2020 , with Member States responsible for paying nationally at least 15% of the total sum. The Commission’s proposal has been sent to the Council and Eu Parliament for final approval. Laszlo Andor, Commissioner for Social Affairs and Inclusion, pointed out: "The Fund would provide a tangible aid to help Europe’s most vulnerable citizens into society. It will be a concrete demonstration of EU solidarity for those people who have been worst affected the crisis". Here comes the Tobin tax. While the Commission proceeds, with some concern, in the negotiations between the EuroAssembly and the Council of the Member States on next year’s budget and Multi-year financial Framework, it accepted the proposal of 11 countries to apply a common tax on financial transactions (better known as Tobin Tax) enhanced by the cooperation laid down in the Treaties. The Member states involved are Germany, France, Italy, Spain, Austria, Belgium, Portugal, Greece, Slovenia and Slovakia and Estonia that account for two thirds of the community economy. Barroso, that made the proposal a year ago, commented: "This tax can raise billions of much-needed euros for the Member States in these difficult times. It is a matter of fairness: we need to ensure that the costs of the crisis are shared by the financial sector instead of shouldered by ordinary citizens". The States must now agree on the procedural steps regarding the rates and financial transactions ( for now the proposal is 0.1% on shares and bonds and 0.01% on derivates; government bonds tax-exempt) and disposition of the collected funds. The proposals are many: from the creation of a Fund for economic competitiveness to another on formation. Algirdas Semeta, Commissioner for taxation, said: "There are EU wide benefits to a common Financial Transaction Tax even if not applied EU wide" ( among the financial markets that have not signed in for the tax London and Luxemburg). It will create a stronger more cohesive Single Market and contribute to a more stable financial market".