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Enhanced Cooperation in the Area of Financial Transaction Tax [FTT]: ECON Draft Report

The European Parliament’s Committee on Economic and Monetary Affairs (ECON) published its draft report on the proposal for a Council directive implementing enhanced cooperation in the area of the Financial Transaction Tax (FTT).

The committee suggests:

  • closing a loophole of the issuance principle as far as OTC derivatives are concerned;
  • reintroducing the ownership principle, according to which a financial transaction in relation to which no FTT has been levied is not legally enforceable and does not result in a transfer of legal title of the underlying instrument;
  • strengthening the residence principle by clarifying that branches of EU institutions registered within the FTT jurisdiction would fall within the scope of the FTT;
  • creating an expert working group at the level of the European Commission to ensure maximum harmonisation and efficiency of collection mechanism.

A vote in committee is currently scheduled for 28th May 2013, and a European Parliament plenary session may take place before summer holidays on 2nd July 2013 (procedure file).

Click here to access more information about the legislative procedure.