Schussel Hints At Tax On Short-Term Investors

by Ulrika Lomas, Tax-News.com, Brussels

20 January 2006

As the European Parliament this week rejected the hard-won budget agreement reached in December, the Austrian presidency of the European Union reiterated its desire for some form of EU tax to contribute to the financing of the European bloc.

The Parliament overwhelmingly rejected the budget, and called for negotiations over the level of the provisions for 2007-2013 as well as spending plans. MEPs were particularly critical of the EUR862 billion in funding agreed by leaders, which compares unfavourably with the EUR975 billion proposed by the Parliament in June.

The resolution was adopted with 541 in favour, 56 against and 76 abstentions.

In a statement, MEPs announced that:

"Nevertheless, Parliament welcomes the fact that Council managed to come up with a position, which allows the opening of negotiations. The European Parliament wants a firm commitment that it will be involved in talks on the revision of the EU budget."

Talks will continue on Monday 23 January.

Speaking with regard to the controversial topic of EU funding this week, Austrian Chancellor, Wolfgang Schussel argued that it needs stronger "own resources", and hinted at the possibility of a tax on "short-term, speculative investors", or on international aviation or maritime travel.

EU member states were quick to fall into their entrenched positions on this issue, with the United Kingdom expressing unease at the prospect of any kind of Europe-wide tax, whilst France stated that it was open to the possibility of such a levy.

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