Despite the inclusion of the FTT in the conclusions of the Euro-area Summit of 29 June 2012 and the formation of a pro-FTT bloc within EU-27, hopes for allocation by key states of the collected revenues to social and environmental priorities, thus making it a Robin Hood Tax, seem to be fading.
As stated at the July report of the Court of Auditors on the country’s public finances,
France should aim to reduce its public deficit to 4.4% of GDP in 2012 and to 3% in 2013, according to the stability programme. The report highlights that additional expenditure and revenue collecting measures will be needed, including the FTT, casting doubts on the allocation of the tax to goals other than servicing France’s debt.
It is worth noting that according to Pascal Canfin, Minister Delegate for Development at the Rio+20 UN Conference, France is to host a side event on so-called innovative financing, measures to bring in more aid revenues, including the divisive issue of a financial transaction tax (FTT), but not limited to the FTT alone. Canfin said France could learn from others, such as the UK, on vaccine initiatives and Germany on carbon.”
In the meantime, the “war” on the FTT, headed by the British Government, has caused the strong reaction of a broad coalition of European NGOs calling for a tax on transactions, as a financial measure of social and environmental justice. In addition, in early July, the United Nations announced the 2012 World Economic and Social Survey, stating that “The United Nations is proposing an international tax, combined with other innovative financing mechanisms, to raise more than $400 billion annually for development and global challenges such as fighting climate change.”