MEPs reject plea to exempt eurobonds from new tax
Thursday 11 February 1999
A Labour move for the exemption was beaten by a large majority in Strasbourg yesterday, as British politicians repeated warnings that the tax could cost up to 110,000 City jobs.
Although the vote in the European Parliament was only consultative, it underlined the UK's isolation on the issue. The only other EU country holding out against the withholding tax, expected to be set at 20 per cent on all savings, is Luxembourg.
After the vote Alan Donnelly, leader of the Labour MEPs, released a letter to the Chancellor, Gordon Brown, arguing that the draft directive is "flawed and against the interests of employment in Europe's financial services industry".
He added: "Unilateral EU-level action, as required by the withholding tax directive, runs the genuine risk of creating an outflow of capital to third countries such as Switzerland."
He warned that there were already clear indications of Swiss preparations for any new opportunities arising from the withholding tax.
Bryan Cassidy, Conservative economics spokesman at Strasbourg, said the proposals "could lead to thousands of job losses in the City if the eurobond market is forced to close due to misguided Euro-rules".
A motion approving the European Commission's proposals went through by 386 votes to 106, despite the opposition of most Labour MEPs.
Germany has already highlighted the importance it attaches to the measure, which, it argues, will help eliminate unfair tax competition.
- 1 Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
- 2 Greece debt crisis explained: A history of just how the country landed itself in such a mess
- 3 People all over the world are getting semicolon tattoos to draw attention to mental health
- 4 Greek debt crisis: Yanis Varoufakis's funniest (and most memorable) quotes
- 5 Swedish minister gives strongest case yet on why EU should stop turning away asylum seekers
More Britons believe that multiculturalism makes the country worse - not better, says poll
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
Sickness and disability benefits could be reduced by £30 a week as part of £12bn welfare cuts
iJobs Money & Business
£40000 - £95000 per annum: Recruitment Genius: This is an exciting opportunity...
competitive: SThree: Are you passionate about sales?Do you have a keen interes...
£17000 - £30000 per annum: Recruitment Genius: This is an exciting opportunity...
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...