European Commission President José Manuel Barroso talks Robin Hood Tax with Prime Minister Gillard
Media Statement
Monday 5 September 2011
European Commission President José Manuel Barroso is meeting with Prime Minister Gillard today to discuss economic relationship between Europe and Australia, including Europe’s need for a financial transaction tax.
Barosso and other European leaders are promoting the tax as a means to raise much needed revenue and reduce amount of risky trading in financial markets.
Barroso wants to encourage Australia to join the debate about financial transaction taxes, also known as Tobin Taxes, at G20 meeting in November this year.
The Robin Hood Tax coalition believes that an international collaboration on this kind of tax would have real benefits for Australia.
Professor Ross Buckley from UNSW said “A financial transactions tax is the tax worth having even if one doesn’t need the revenue raised as it will improve the operations of financial markets by reducing the volume of ultra-short-term computer generated trading.
“This trading distorts the capacity of markets to set prices accurately. For too long Australia has failed to engage with the idea of this tax, but now we must as it is an important item on the agenda of the next G20 meeting.
“For this reason, it is exciting that European Commission President José Barroso is discussing this tax with the Australian Prime Minister today.”
Professor Ross Buckley is an expert advisor to the Australian civil society coalition of over 24 organisations that are campaigning for financial transaction taxes, under the banner of the Robin Hood Tax coalition.
Additional Notes
- José Manuel Barroso announced in media in June that the European Commission (EC) intends to introduce legislation to the EU to implement a European financial transaction tax (FTT). The EC are scheduled to publicly release their assessment of FTT in October to coincide with the introduction of legislation to the EU.
- This announcement has also been used by French President Sarkozy and German Chancellor Angela Merkel to push for a Eurozone implementation of FTT to address deficit reduction. President Sarkozy is also very committed to raise funds for overseas development assistance and climate change.
- Barroso, Sarkozy and Merkel have all acknowledged that an international FTT lead by G20 countries is the most effective implementation of the tax. The debates in Europe are scheduled for October and it is anticipated they would see subsequent positive movement at the G20 in November.
