As EU leaders prepare to meet for the first time this year, the president of the Pontifical Council for Justice and Peace has called for the adoption of a financial transaction tax (FTT) to support global development and create a reserve fund to support nations hard hit by the financial crisis.
The European Commission (the EU’s governing body) and France support the adoption of an FTT, while the United Kingdom opposes it.
“One way of bringing economics and finance back within the boundaries of their real vocation, including their social function, would be through taxation measures on financial transactions,” said Cardinal Peter Turkson.
“These should be applied with fair rates, modulated in proportion to the complexity of operations, especially those made on the ‘secondary’ market.”
“Such an FTT would be very useful in promoting global development and sustainability according to the principles of social justice and solidarity,” he added.
“It could also contribute to the creation of a world reserve fund to support the economies of the countries hit by crisis, as well as the recovery of their monetary and financial systems.”