Debating a European tax on financial transactions

The debate over taxes on financial transactions (FTT) has become prominent in the context of financial crisis, fiscal consolidation and reform of European institutions. The rationale stems from the view that the financial sector should compensate taxpayers for costly rescue operations, considering that financial activity is under-taxed compared with other sectors of the economy. However, to say the least there is no consensus on either the principle of a FTT, or the modalities of it as proposed in September 2011 by the European Commission.

What led the Commission to this proposal, and what alternative options did it consider? What would be its economic impact? What are the prospects for adoption at the international, EU or Eurozone level?

Speakers

Manfred Bergmann joined DG ECFIN of the European Commission in 1988. Before being appointed Director in DG TAXUD in July 2011, he had been a Head of Unit in charge of Industrial Competitiveness Policy in DG ENTR (2008 – 2011) and in charge of the Economic Evaluation of Community Policies in DG ECFIN (1997 – 2007). He holds a PhD in Economics from the University of Münster.

Download Mr. Bergmann's presentation here

Sony Kapoor is Managing Director of Re-Define, a research and consulting organisation which he founded in 2008. In 2011 he became Chair of the Stakeholders Group of the European Banking Authority. He has previously worked in financial services and in the NGO sector, including as Senior Advisor of Christian Aid and the Tax Justice Network. He holds an engineering degree from the Indian Institute of Technology, an MBA from University of Delhi, and a master’s degree from the London School of Economics, where he remains a Visiting Fellow.

Michael Kroener was Global Head of Tax at Deutsche Bank in Frankfurt until October 2011. Before joining Deutsche Bank in November 2001, he served as an international partner at Arthur Andersen and head of the firm’s German Tax and Legal practice. He holds a diploma and PhD in Business Administration from the University of Cologne and public certified tax consultant. He is a Board member of the International Fiscal Association (German branch) and author of books and other publications in the field of taxation.

Download Mr. Kroener's presentation here

The discussion was moderated by Nicolas Véron, Senior Fellow at Bruegel and Visiting Fellow at the Peterson Institute for International Economics.

Please note that the Chatham House Rule applied for this event.