On 3 July 2013, the European Parliament adopted a legislative resolution on the proposed Financial Transaction Tax (FTT) Directive amending the European Commission’s proposal of 14 June 2013.
The European Parliament has proposed the following amendments to the Commission’s proposal:
- Expansion of the scope of financial transactions
- Insertion of a clause to the effect that financial transactions which serve to insure against risks directly associated with business activities of a non-financial institution should not be taken into account when calculating the average value of financial transactions
- Clarification of the exemptions laid down in the text of the draft Directive. The FTT will not, for example, apply to SME growth markets
- Amendment of the draft Directive to provide that a financial institution shall be deemed to be established in the territory of a Participating Member State if it is a branch of an institution established in a Participating Member State and therefore subject to the FTT
It is now up the 11 Member States participating in the enhanced cooperation arrangement to reach a deal. The Council must notify the European Parliament if it intends to depart from the text approved by the European Parliament and any substantial amendments will require the Council to consult the European Parliament again.