MEPs backed a new proposal on the taxation rules for financial transactions. The tax rates are designed to be 0.1% for shares and bonds and 0.01% for derivatives. The pension funds should be the only sector exempted from the tax. Moreover, financial institutions located outside the EU would also be obliged to pay the FTT if they traded securities originally issued within the EU.
However, some Member States oppose the proposal and threaten to use their veto power during the Council vote. The strongest opponents of the FTT are the United Kingdom and Sweden. The EC and the EP recognize the probability of these countries not voting for the proposal. Their joint opinion says the FTT should go ahead even if some Member States opt for it. However, if the Council does not adopt a unanimous decision, it could lead to the single market being undermined and the FTT being inefficient.
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