Friday 8 June 2012

florian-geyer-steuer

Despite polls showing majority public support for the matter were it put to a referendum, the Berlin plan for the European Union fiscal compact has been struck down again, primarily due to internal strife and international rejection of a financial transaction tax levied on stock trades. Using current market activity, some seventy billion euro annually could be skimmed off the top and shore up emergency funds. Opponents argue that such projections are unrealistic, since without region-wide or even world-wide buy-in, adoption of the tax, places with the tax regime would become islands, cordoned off from the rest of the financial sphere, which becomes in turn more lucrative for not having to worry about this tithe-ling—something very nominal, from a tenth to a hundredth of a percent of the value of the transaction.
Like the Tobin Tax on currency exchange, it would also reduce speculation and short-selling. At the same time, France has announced that it will introduce its own domestic transaction tax, regardless of what the rest of the world does, and given this weak contrary argument, I wonder how big that sphere of participants has to expand, according to the brokers and the bankers, to the make the field level, globally or within the euro-zone only. I am against austerity measures because in general they have been a poorly managed sacrifice (Aufopferung), uneven and without edification, but to corner the market and demand this tribute on any level is not only staving off the inevitable but also perhaps reducing the need to enact those tougher elements of the compact, including member states ceding control of their budgets and social programmes. A toll charge, easily and automatically born, that pushes some responsibility onto the banking houses that enabled this crisis is a better solution, despite any insincere fears of a temporary traders’ egress (to some other haven off-shore), than the lingering deflection of propaganda and stereotype, aggrandizing the status quo, which drains the possibility for real recovery and reform.