The European Commission has issued a proposal for a Council Decision authorising enhanced cooperation in the area of financial transaction tax.

The proposal is aimed at (i) harmonising legislation concerning indirect taxation on financial transactions; (ii) ensuring that financial institutions make a fair and substantial contribution to covering the costs of the recent crisis and creating a level playing field with other sectors from a taxation point of view, and (iii) creating appropriate disincentives for transactions that do not enhance the efficiency of financial markets thereby complementing regulatory measures to avoid future crises.