FTT: EPP Group regrets agreement only the 4th best option

EPP Group negotiator Othmar Karas: "This is just the lowest common denominator, further steps must follow"

The EPP Group's negotiator on the European Financial Transactions Tax (FTT), Othmar Karas MEP, welcomes today's agreement between the participating Member States. "This is reasonable and an overdue political signal. Unfortunately this is just the 4th best option: this is just the lowest common denominator, further steps must follow," Karas said after the agreement today.

The longterm goal - according to Karas - must be to get a global financial transactions tax. "The best would have been to include all global financial centres. The second option was an EU-wide FTT, the 3rd option was joint action of the Eurozone. I remain optimistic," Karas stressed.

The purpose of the FTT is not to be another cash cow, but to have a regulatory effect Othmar Karas MEP

In 2012 and 2013 the European Parliament voted by an overwhelming majority in favour of the swift introduction of an EU-wide FTT. In December 2013 Parliament gave its consent to only 11 Member States going ahead with the tax (533 votes in favour, 91 against and 32 abstentions). Karas led the negotiations on behalf of the EPP Group. 

"The purpose of the FTT is not to be another cash cow, but to have a regulatory effect. Risky and untransparent business practices should be taxed more," Karas said.