The Daily Telegraph recently revealed that France and Germany believe the financial transaction tax, proposed as a means to alleviate some of the region’s pressure, is in fact the first step towards the EU’s new power.
The Franco-German paper that discusses the issue claims that “European institutions and member states should accelerate the process of tax co-ordination. In particular the negotiation of the European Commission proposals on energy tax directive, common consolidated corporate tax base and common system of financial transaction tax should be accelerated.
“In order to set the stage for enhanced tax co-ordination, France and Germany express their support for the European Commission’s proposal on a common system of financial transaction tax.”
Britain is adamantly opposed to the plan, claiming is will “erode national sovereignty.” Industries throughout the region are concerned that the tax legislation will boost the level of duty on red diesel, hampering the already-struggling competition during the recession.