EU's Financial Transaction Tax under Siege

Responding to recent news suggesting that the Financial Transaction Tax (FTT) has lost the support of Belgium and Slovakia (who are concerned over its impact on pension funds), Deputy Laurent Mosar of Luxembourg’s Christian Social People's Party (CSV) called on Luxembourg Finance Minister Pierre Gramegna to clarify the situation.

Background: FTT

On October 10, 2016, the finance ministers of the 10 EU member states, who work on developing financial transaction tax, agreed on some important measures which form "the core engine" of FTT, following three years of negotiations and many missed deadlines.

Position Of Benelux Countries In Question

Laurent Mosar asked Luxembourg’s Ministry of Finance to confirm that the Benelux countries have a “common position” on the controversial Financial Transaction Tax, Luxemburger Wort reported. This follows the article in France’s Les Echos, that suggested Belgium and Slovakia lose interest in the FTT due to pension funds impacts.

Pension Funds Roadblock

In addition, there are concerns about the country could lose Brexit-generated financial business to Luxembourg and the Netherlands, who do not support the FTT. If Belgium and Slovakia withdraw their support, the whole FTT initiative might soon come to its end.

Source: Wort, Les Echos, City A.M., Business Times

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