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).
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